Genting Singapore reports lower profits as high rollers play less, resort revamp continues
It expects the renovation works to improve RWS' offerings and appeal over the longer term.
Shares of Genting Singapore plummeted over 4% to 58 cents at the opening bell on Nov 13 following a report of declining profits in the latest quarter. The company attributed the decline to a drop in high rollers visiting Resorts World Sentosa (RWS) and ongoing renovations at the resort, which have dampened visitor footfall and spending.
In the three months leading up to Sept 30, net profit took a 42% hit compared to the same period last year, falling to $54.7 million. Revenue also declined by 13% to $566.1 million, and was lower than the preceding quarter as well. Both the net profit and revenue for the July to September quarter also lagged behind the previous quarter from April to June.
Casino revenue suffered a 22% plunge to $315 million within the recent quarter when compared to the previous year, due to less activity among premium gamblers and a smaller-than-average share of wagers retained by the casino in September. Genting, however, deemed this development in line with the patterns observed in key regional markets.
The group expressed confidence that the adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter could have been around $36 million higher if the casino had maintained its usual share of premium wagers. Non-gaming revenue, meanwhile, saw a modest 1% increase year-on-year to $250.9 million in the quarter, though the operator did not disclose the factors contributing to this growth.
Genting remains optimistic that the year-end holiday season will attract more visitors, despite the resort's ongoing improvements to its hotels, gaming areas, and other guest spaces that will limit operating capacity until 2027. To woo premium clientele, the resort is ramping up marketing efforts, leveraging events and new openings at Weave, its retail and dining precinct, to offer guests more reasons to return.
Simultaneously, RWS is revamping its gaming areas, lounges, restaurants, and other guest spaces to enhance the hotel offerings and broaden the resort's appeal in the long run.
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Also reported by 1 other outlet
- Genting Singapore shares hit 1-year low after Q3 profit falls 42.2% businesstimes.com.sg
