Genting Singapore has reported that revenue dropped 9 per cent quarter-on-quarter to SG$251.5m (US$186.8m).
Singapore.- Genting Singapore has published financial results for the third quarter of 2021, reporting a decrease in revenue of 16 per cent year-over-year and 9 per cent compared to the previous quarter. The company also reported a drop in EBITDA to SG$102.5m (US$76.1m), down 30.7 per cent when compared to the previous quarter and down 31.2 per cent year-on-year.
Gaming revenue came in at SG$194.7m (US$144.6m) for the third quarter while net profit fell from SG$54.4m in Q3 2020 to SG$60.7m. The figure was also down 13 per cent quarter-on-quarter. Genting Singapore attributed the decline in revenue to Covid-19 countermeasures imposed by the government.
Analysts at banking group Nomura have predicted Genting Singapore Ltd’s EBITDA for full-year 2021 will come in at SG$490m (US$363.6m), a decrease on its previous forecast. Analysts said that as China is still pursuing a “zero-Covid strategy”, Genting Singapore’s revenues will be affected into 2022 as China was the most important overseas market before the pandemic.
However, Singapore has started to ease Covid-19 restrictions and has recently announced the launch of a travel bubble with Malaysia from November 29.
Genting Singapore H2 earnings to be similar to H1, analysts say
According to Nomura, Genting Singapore’s earnings for the second half will be similar to those registered during the first quarter of the year or even below that level. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first half was SGD276.1m, compared to SGD66.7m in the first half of 2020.