Genting Singapore's Q3 earnings tumble 43% to S$127m

GENTING Singapore's net profit for the third quarter ended Sept 30, 2014, fell 43 per cent to S$127.10 million from S$222.69 million a year ago, hit by weak high-roller or VIP business.

This was after it had apportioned some S$29.7 million, as was the case a year ago, to holders of perpetual capital securities.

Revenue tumbled 17 per cent to S$644.77 million, from S$776.82 million in Q3 2013.

Earnings per share fell to 0.80 Singapore cents from 1.58 Singapore cents. As in the previous period, no dividend was recommended.

The casino operator attributed the lower bottom line to the underperformance of the premium-player business due to low win rates.

It, however, added that the attractions business continued to achieve strong growth with average daily attractions visitation growing 10 per cent from the previous quarter while the hotel business enjoyed a high 95 per cent occupancy rate.

Acknowledging that the Asian gaming and tourism industry was facing significant challenges on the back of economic slowdown in major visitor markets, the firm said it will continue to spend on marketing and promotions to improve new and repeat visitation from traditional markets both in the gaming and non-gaming businesses.

"Looking across our gaming business, we see encouraging signs in specific sectors and we will refine our strategies to fully pursue these opportunities," it added.

Genting shares closed 1.5 Singapore cents or 1.4 per cent lower at S$1.04 on Tuesday.