Genting 17Q4 results miss estimates

Genting Singapore saw its net profit fall 29 percent in the fourth quarter of 2017, reaching S$134 million (US$101.5 million), according to a recent filing to the Singapore Stock Exchange.

Revenue increased 4 percent in the quarter to $580.1 million, underpinned by a stronger performance of the leisure and hospitality segment as a result of higher business volume.

Adjusted EBITDA was $255 million, an increase of 9 percent year-on-year.

Bernstein on Monday said the strength in EBITDA came from  higher mass hold and an extraordinarily low net A/R write down.

Daily average visitation for the group’s major attraction offerings, Universal Studios Singapore, the S.E.A. Aquarium and Adventure Cove Waterpark, enjoyed growth in a range from 6 to 9 percent in the quarter. Hotel business maintained a high occupancy rate of 91 percent.

The fourth quarter results brought Genting Singapore’s full-year net profit to $685.6 million, registering an increase of 78 percent compared to the year before. Adjusted EBITDA grew 48 percent year-on-year to S$1.2 billion.

“In 2017, the Asian gaming and tourism industry showed signs of rebound as a result of good economic growth in our main geographic markets. Together with a business strategy and plan that was well executed, especially in the gaming business segment, we have been able to significantly grow both our revenues and profitability,” said Genting.

“In 2017, we have recalibrated our credit policy and commission structure for the VIP gaming business. This is paying off and is proving to be a sustainable growth strategy. We are now able to achieve lower impairment on gaming receivables and improve operating margins,” it added.