Genting Singapore is a Singapore-based regional leisure, integrated resorts development and hospitality specialist listed on the main board of Singapore Exchange Securities Trading Limited.
Genting Singapore (G13) got back into the market with a net profit of SGD 159.19 million for the fourth quarter of the year 2016, which ended Saturday 31 December. This performance is quite impressive compared to their performance a year ago where a net loss of SGD7.75 million was incurred. SGD29.71 million was also dispensed to holders of perpetual securities, the profit of the year would have summed up to SGD188.9 million.
Singapore’s Q4 improved performance was sustained by the elevated revenue in gaming because of the higher rolling percentage wins in the premium-player business. In addition, the improvement in their performance can be as a result of the strategy of the group to focus on businesses with a good margin.
Singapore Q4 revenue was higher by two percent at SGD557.66 million. The revenue from gaming improved by seven per cent to SGD398.63 million while that of non-gaming fell by eight per cent to SGD158.51 million.
The earnings per share was at 1.33 Singapore cents, coming against the losses a year ago per share of 0.06 cent. For the quarter of the year under review, Singapore Genting group delivered 29 per cent year-on-year growth in adjusted EBITDA (Earnings before interest, tax, depreciation and amortization) at SGD233.7 million.
The Integrated Resort World Sentosa (RWS) had an adjusted EBITDA of SGD235.5 million and they generated a revenue of SGD557.1 million. This shows a trend of improvement up to 30 percent comparing with the performance from a year ago. The net profit improved from SGD75.19 million to SGD266.35 for a full year while the revenue fell 7 percent on SGD2.23 billion year on year.
The attraction business recorded an average of 18,000 daily visits while the hotel business saw a high occupancy rate of 92 percent.
Genting said, “With the constant insecurity in the political and macroeconomic environment, combined with a tough Asian gaming market, we carry on adopting a restrained tactic in the VIP gaming industry”. They also added, “The loss of receivables linked to this industry segment has decreased since we adapted our commission structure and adjusted our credit policies. We have recorded improved profit margins in this sector.”
Market programs may be influenced negatively by the uncertain global political climate and the resulting impact on foreign exchange. Genting added, “We carry on tracking the growth of the IR Execution Bill to make the way for the Japan gaming license’s formal bidding process. The group is financially stable and is well-placed to bid for this chance.”
Genting’s director has recommended a final dividend of 1.5 Singapore cents per share. In the first quarter of 2017, a gain on disposal of about SGD96.3 million is expected to be recorded as gain by the gaming group. This is in relation to the disposal of a stake in Landing Jeju Development Co. and related entities.