Genting Singapore goes into the red in Q4
TODAY reports: The company, which operates Resorts World Sentosa integrated resort with casino, suffered a net loss of S$7.8 million in the three months ending Dec 31.
- Posted 19 Feb 2016 07:58
- Updated 19 Feb 2016 10:00
SINGAPORE: Casino operator Genting Singapore ended 2015 with its second quarterly loss in a year amid a continued weak performance in its gaming business from the high-roller segment.
For its fourth quarter ended Dec 31, Genting, which operates the Resorts World Sentosa (RWS) integrated resort with casino, suffered a net loss of S$7.8 million, reversing from the S$89.2 million net profit in the corresponding period a year ago, said the company in an aftermarket filing with the Singapore Exchange on Thursday (Feb 18).
This came on the back of a 14 per cent year-on-year plunge in total revenue to S$547.4 million, with gaming revenue declining 19 per cent to S$374 million. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) — the key measure for operating performance in the gaming industry — fell 5 per cent to S$181.3 million.
“Gaming revenue was impacted by a lower VIP gaming market as we continue to tighten our credit policies,” said Genting Singapore in its statement, adding that the decrease was partially mitigated by lower operating costs and overheads, which were achieved through various operational efficiency improvement initiatives.
The company, which is controlled by Malaysia’s Genting Berhad, had also reported a net loss of S$16.9 million in the second quarter ended June last year. For the entire financial year of 2015, Genting Singapore’s net profit slumped 85 per cent to S$75.2 million. Annual revenue fell 16 per cent year-on-year to S$2.4 billion.
“2015 has been a challenging year for the Asian gaming industry … In the non-gaming business, despite an overall slowdown in tourism arrivals to Singapore, RWS attractions business delivered a good performance. We had nearly 7 million visitors accounting for one-third of overall Singapore attractions visitorship, and our hotels outperformed the industry in occupancy and average room rates,” said the firm.
The company’s board proposed a payment of a tax-exempt, one-tier final dividend of 1.5 cents an ordinary share for the financial year 2015. Before the release of Genting Singapore’s financial statement on Thursday, its shares closed unchanged at 70.5 cents, giving it a year-to-date decline of 8.4 per cent, compared to the 7.8 per cent decline in the Straits Times Index.
Genting Singapore’s rival Marina Bay Sands (MBS) stayed well in the black, even though it also had a rough fourth quarter as luck improved for high rollers. Its parent firm, Las Vegas Sands, which released its latest financial statement last month, said MBS’ adjusted property EBITDA was down 34.8 per cent year-on-year to US$338.2 million (S$474.7 million), while revenue slipped 16.1 per cent to US$703.9 million.
Singapore and other gaming markets around the world have come under pressure amid China’s crackdown on corruption, with high-rollers from the country curbing spending to avoid scrutiny.
Read the original TODAY report here.