Singapore casinos: Genting Singapore posts revenue of US$423.5m for Q3
Revenue was down 19 per cent year-on-year and 2 per cent sequentially.
Singapore.- Genting Singapore has shared its financial results for the third quarter of the year. It posted a revenue of SG$561.9m (US$423.5m), down 19 per cent year-on-year and 2 per cent sequentially. The decrease was mainly attributed to a 28 per cent year-on-year drop in gaming revenue from the integrated resort (IR), Resorts World Sentosa (RWS), to SG$330m (US$250m).
Non-gaming revenue, however, was up 1 per cent year-on-year and 22 per cent sequentially to SG$231.8m (US$174.7m). Revenue from other segments, including the group’s investment business and support services, rose by 2 per cent year-on-year to SG$144,000 (US$108,529).
The company also posted a net profit after tax of SG$79.4m (US$59.8m), down 63 per cent year-on-year and 27 per cent in quarter-on-quarter terms. EBITDA fell by 56 per cent year-on-year to SG$152.4m (US$114.9m), while adjusted EBITDA fell by 53 per cent year-on-year to SG$163.9m (US$123.5m).
The quarter-on-quarter decline in the company’s performance was mainly attributable to lower VIP rolling volume and win rate. The non-gaming business improved due to seasonality, despite the full closure of Hard Rock Hotel for renovation and re-branding, and the S.E.A. Aquarium’s weekly two-day closure for its expansion into the Singapore Oceanarium.
The casino operator also stated that despite a slower recovery of international visitor arrivals to Singapore, RWS has continued to advance its transformation to improve its appeal as a destination and enhance visitor experiences.
The Singapore Tourism Board (STB) reported that the country received 12.59 million tourists in the first nine months of the year. China was the top source market, with 2.47m visits.
The company also stated that, in the third quarter of 2024, RWS has achieved “a significant milestone” by awarding the construction contract for the Waterfront development and work will commence this month. The Waterfront development includes two new luxury hotels featuring 700 keys, four-storey podium housing entertainment offerings, as well as retail and dining outlets.
As regards RWS 2.0, Genting Singapore has said that progress developments are ongoing. The first phase began in the second quarter of 2022. Key components include the expansion of Universal Studios Singapore and the transformation of the S.E.A. Aquarium into the Singapore Oceanarium. Genting Singapore announced an investment of approximately SG$6.8bn (US$5bn) last November.
Moody’s affirms A3 credit rating for Genting Singapore
Moody’s Investors Service has affirmed Genting Singapore‘s credit rating at A3, indicating upper-medium grade and low credit risk. The outlook for the company remains stable. Analysts said Upward movement of the rating was unlikely, “given Genting Singapore’s small scale compared with its global peers and its concentration in Singapore.”
Moody’s expects the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) to reach SGD1.2bn (US$906.8m) this year, reflecting a slight increase as demand has softened amid economic uncertainty. Analysts noted that the casino operator’s operational capacity has temporarily fallen due to the closure of a hotel for renovations. They forecast that EBITDA will grow to SGD1.3bn in 2025 as new attractions open gradually.
Moody’s noted that Genting Singapore is modernising offerings at Resorts World Sentosa (RWS) as part of its casino licence extension until 2030, with an investment of SGD6.8bn: “Although the amount is significant, the capital expenditure will be spread across multiple years, peaking at an estimated SGD1 billion per annum between 2027 and 2029.”
