Genting Singapore posts annual net profit of US$254.6m in 2022

Net profit was up 85.5 per cent when compared to the previous year.

02/20/23

Revenue increased 61.7 per cent on year-on-year terms.

Singapore.- Genting Singapore Ltd has reported an 85.5 per cent increase in net profit for full-year 2022, at SGD340.1m (US$254.6m). The casino operator reported that 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.

However, the group’s overall 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.

Group-wide revenue in the six months to December 31 was SGD1.06bn, compared to SGD663.1m in the first six months, while second-half gaming revenue rose 58.6 per cent from the first half to SGD753.7m. Adjusted EBITDA in the second half stood at SGD505.4m, compared to SGD268.7m in the first six months.

The firm said it is cautiously optimistic of a full recovery in the medium term as flight capacity and economic uncertainties could moderate the pace of recovery.

Morgan Stanley Asia Ltd has recently predicted that Singapore’s GGR may reach US$4.4bn in 2023 and US$5.2bn in 2024. That compares to a peak of US$4.6bn in 2018. It believes that as more affluent Asians head to Singapore, the country’s GGR could surpass its previous peak in 2024 and 2025, with mass and slot revenue contributing more.

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