Genting Singapore's full-year net profit down 90%

GENTING Singapore on Tuesday posted a 90 per cent plunge in full-year net profit to S$69.2 million, which the integrated resort operator called the "worst financial performance since the opening of (its) Singapore Integrated Resort in 2010".

This was despite the group's implementation of cost-containment measures and aid from the Singapore government amid the Covid-19 pandemic, Genting Singapore said.

Two-thirds of the net profit was attributable to the better performance before the Chinese New Year in the first quarter of 2020, prior to the onset of the Covid-19 pandemic in Asia.

Regulatory restrictions, border closures and operating capacity restrictions subsequently dragged down the group's performance in the remainder of the year.

Revenue for the year ended Dec 31, 2020 slid 57 per cent to S$1.1 billion, while gross profit fell 77 per cent to S$231.9 million.

The gaming segment churned out revenue of S$700.8 million, a 57 per cent decrease, while the non-gaming segment posted revenue of S$299.4 million, 65 per cent lower than a year ago.

However, revenue from the investment business, along with other hospitality and support services, grew several times to S$63.5 million from S$2.8 million.

Other operating expenses increased to S$25.6 million from S$4.6 million, while finance costs fell 80 per cent to S$4 million.

Net profit for the second half of 2020 decreased 41 per cent from the corresponding period in 2019 despite efforts by the group that helped bump up visitations by local residents to Resorts World Sentosa (RWS).

Earnings per share was 0.57 Singapore cents, down from 5.71 cents a year ago.

The board is recommending a final dividend of one Singapore cent per ordinary share for the full year. No interim dividend was declared.

For the previous financial year ended Dec 31, 2019, a final dividend of 2.5 cents per share and an interim dividend of 1.5 cents per share was paid to shareholders.

Genting Singapore said it is evident that international travel is unlikely to return to pre-pandemic levels anytime soon. The group will continue to pursue its growth strategy with the S$4.5 billion mega expansion to anchor RWS as Asia's leading leisure and tourism destination, it said.

The group is also engaging relevant stakeholders with regard to the opportunity of developing an integrated resort in Yokohama, Japan.

The counter closed at S$0.89 on Tuesday, up 0.5 Singapore cents or 0.57 per cent.