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Genting Singapore Q2 net profit falls 5% to S$168.4m

GENTING Singapore, which owns Resorts World Sentosa (RWS), on Friday posted a net profit of S$168.4 million in the second quarter, down 5 per cent from the same period a year earlier.

The decline might have been sharper, if not for the high-rolling win percentage in the VIP rolling business that provided some buffer against the slowing economy.

Revenue for the three months ended June 30 rose 14 per cent to S$636.8 million.

Gaming revenue rose 22 per cent to S$441 million. Non-gaming revenue dipped 1 per cent to S$195 million.

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Gaming revenue was largely driven by a favourable win percentage, the group said. "Underlying mass gaming business experienced significant declines in the quarter, and would have been further impacted if not for considerable increased spending to tap the regional markets."

Other drags on revenue will continue to affect the integrated resort for the rest of this year, it said. "We maintain our cautious stance on the premium segment as the regional economic environment faces uncertainty and will impact consumer confidence.

"Nevertheless, RWS will continue to innovate its offerings to enhance and diversify its appeal to various target markets around the region."

Adjusted ebitda (earnings before interest, tax, depreciation and amortisation) rose 11 per cent to S$294 million, while net impairments on gaming receivables stood at S$47.3 million.

On a hold-normalised basis, adjusted ebitda was S$230 million, a decline of 20 per cent.

During the quarter, RWS's average daily visitation was over 20,000, while the hotel business had a "respectable" occupancy rate of 85 per cent.

The group has drawn up plans to retire certain assets in connection with the mega-expansion of RWS announced in April, so depreciation and amortisation costs in the quarter rose 43 per cent to S$99 million.

For a start, the complete revamp of the Resorts World Theatre into a first-of-its-kind Adventure Dining Playhouse is underway, and scheduled to open in 2021.

Genting Singapore also gave an update on its bid to open an integrated resort in Japan.

"We have fully met the application guidelines and qualifying criteria for the Osaka Request-for-Concept (RFC) and received the confirmation notice that our RFC registration was officially approved by the local government," the group said.

"We are well-positioned to submit a world-class concept which will enhance Japan's appeal as a global MICE and leisure destination."

An interim dividend of 1.5 Singapore cents per share will be paid on Sept 20, the same as last year.

Second-quarter earnings per share was 1.40 Singapore cents, down 5 per cent from 1.47 Singapore cents in the second quarter last year.

First-half earnings per share for the half-year ended June 30 was 3.10 Singapore cents, down 5 per cent from 3.28 Singapore cents in the first-half last year.

Genting Singapore shares fell two Singapore cents or 2.17 per cent to S$0.90 on Friday before the results were announced.