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Genting Singapore Q4 net profit up 12% to S$150.2m

GAMING company Genting Singapore on Thursday posted a 12 per cent rise in net profit to S$150.2 million for its fourth quarter ended Dec 31.

This was thanks to "encouraging" performances in both its gaming and non-gaming segments, despite economic uncertainties and intensifying competition, it said.

Earnings per share rose to 1.25 Singapore cents for the quarter from 1.1 cents in the corresponding year-ago period.

This came on the back of a 15 per cent increase in revenue to S$664.8 million in the fourth quarter.

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Genting Singapore said: "Our attractions business did well with average daily visitation of over 21,000 and an increase in average visitor spend across all offerings. Our hotels continued to outperform the industry with an occupancy rate of 95 per cent."

The group's net asset value rose to 64.6 Singapore cents per share as at end-2018 from 61.8 cents as at end-2017.

For the full year, net profit improved by 10 per cent to reach S$755.4 million, while revenue rose 6 per cent to S$2.5 billion.

The group attributed the improved bottom line to ongoing productivity initiatives.

"Excluding the prior year's one-off gain of S$96.3 million on disposal of the group's interest in an integrated resort in Korea, our net profit registered strong 28 per cent year-on-year growth," it said.

As a whole, Genting Singapore said its marketing efforts towards the regional premium mass segment yielded positive results while its rolling business grew respectably.

"Meanwhile, our non-gaming businesses also experienced growth in both visitation and spending per pax from great curated events, innovative offerings and initiatives."

This year, it is "cautious about the ambiguous economic environment and ongoing geopolitical friction that are clouding the growth of the Asian gaming and tourism market".

The company said that it will continue to refine its marketing focus on markets that produce "respectable returns", and targets to improve customer experience to overcome rising competition from other newly opened gaming facilities.

As for its opportunity to develop a Japan Integrated Resort (IR), it said that it is looking forward to the Japanese government publishing detailed regulations for the establishment of IRs.

In the meantime, it will deploy resources on the ground and actively develop bid design and concepts, while engaging stakeholders to prepare for the formal bidding process which is expected to start in the second half of 2019.