Genting Singapore Q1 net falls 33pc, looks to expand
SINGAPORE, May 10 – Genting Singapore PLC, which owns one of Singapore’s two multibillion-dollar casino complexes, posted a 33 per cent fall in first quarter net profit today and said it was looking for new projects to expand its business.
“We took advantage of the favourable financial markets conditions and leveraged our brand name and management track record to raise S$2.3 billion (RM5.62 billion) through the issue of perpetual subordinated capital securities,” Chief Operating Officer Tan Hee Teck said during a conference call.
“The funds we raised will provide us with the firepower to identify and pursue new projects and grow our company.”
Tan also said two junket operators licensed to help attract high-rollers to Genting’s Singapore casino will contribute to gains in the medium term and that the company was happy with their initial performance.
Junket operators, known in Singapore as international marketing agents, organise visits to casinos and provide credit to players in return for commissions from casino owners.
Genting, the Singapore unit of Malaysia’s Genting Bhd, said it earned S$205.5 million in the January-March period, down from S$305.4 million a year earlier due to lower gaming revenues.
Higher depreciation with the opening of new attractions in Genting’s theme park in Singapore, as well as new hotels and a museum, also hit earnings.
Its Singapore casino, Resorts World at Sentosa, made S$376.4 million in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) last quarter, down from S$528.4 million a year earlier.
Genting’s EBITDA was lower than the US$472.5 million (RM1.45 billion) reported by Singapore rival Marina Bay Sands, owned by US casino giant Las Vegas Sands.
Resorts World’s net revenue for the first quarter was S$787 million, 14 per cent below a year earlier, due to the casino’s lower win percentages and business volumes in the premium player business, Genting said.
Marina Bay Sands and Resorts World are the world’s second and third most expensive casino complexes after MGM’s CityCenter in Las Vegas, and their profits and profit margins are among the highest globally. – Reuters