Genting Singapore chairman cautious on market recovery

Genting Singapore’s chairman says the recovery of travel and tourism in Singapore may be inconsistent.

Singapore.- Lim Kok Thay, Genting Singapore’s chairman, says he expects a continued recovery in the Singapore market but at an inconsistent pace due to international flight capacities and border measures. Presenting the company’s financial results for 2022, he said that following the Covid-19 pandemic, economic uncertainties, inflationary pressure and manpower challenges were concerns.

In January, The Singapore Tourism Board (STB) predicted that visitor arrivals for 2023 may hit 12 million to 14 million, compared to 6.3 million in 2022.

Genting Singapore, which operates Resorts World Sentosa, one of Singapore’s two casino resorts, has reported an 85.5 per cent increase in net profit for full-year 2022, at SGD340.1m (US$254.6m). Revenue increased 61.7 per cent year-on-year to SGD1.73bn (US$1.294bn) due to an increase in business volume. 

The group’s cost of sales rose 51.7 per cent to SGD1.12bn. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was SGD774.2m (US$579.5m), compared to SGD448m in 2021. The group’s profit margin was impacted by higher utility tariffs, increased casino tax rates and accelerated depreciation on certain assets related to the renovation of one of its hotel properties and the expansion of Resorts World Sentosa.