Genting's Q1 earnings down 26% on Covid-19 impact

GENTING Singapore, the operator of Resorts World Sentosa, on Friday posted in its first-quarter business overview a 26 per cent drop in net profit afer tax to S$34.5 million for its first quarter ended March 31, 2021, while revenue declined 32 per cent to S$277.9 million.

This was due to the Covid-19 impact which continued to weigh on its operational performance, it said, adding that its earnings decline would have been more pronounced if not for the support measures initiated by the Singapore government.

Under revenue, gaming revenue slid 19 per cent to S$216.9 million, while non-gaming revenue plunged 56 per cent to S$60.7 million. Adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) for its Singapore integrated resort (IR) fell 15 per cent to S$135.1 million.

The company said that the tourism sector is still hobbled by the restricted travel between its traditional markets, while it has also been "careful and calibrated" to resume its business to safeguard everyone's health and safety as a priority.

Meanwhile, international travel continues to suffer from significant disruption due to the resurgence of virus cases in several of its key source markets. It envisages that international visitor arrivals to Singapore, especially for leisure, will be unlikely to return in the near term.

To weather through this tough period, Resorts World Sentosa has been developing creative events and promotions for domestic tourists. For instance, it introduced all-in-one destination packages featuring tropical curated cuisines and staycation itinerary, including tropical themed performance in Universal Studios Singapore and the SEA Aquarium.

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Revisions to its S$4.5 billion mega expansion planned facility designs are also ongoing, including health and safety protocols to provide reassurance to visitors, and sustainable urban features.

It has also obtained a temporary occupation permit for the remodelled Resorts World Theatre for its new experiential dining attraction, Once a Pirate, and will be embarking on show production and performer recruitment.

On the environmental, social and corporate governance front, it also has a goal to work with Sentosa Development Corporation to transform Sentosa Island into a carbon neutral destination by 2030.

As for its growth and geographical diversification strategy, it is also engaging stakeholders for the request for proposal (RFP) issued by Yokohama City. The Japanese metropolis early this year announced its RFP timeline for casino groups to submit proposals to the city government.

Its shares added half a Singapore cent or 0.59 per cent to S$0.85.