Genting Singapore reports “significant” drop in 15Q2 revenue

Genting Singapore, which operates Resorts World Sentosa, reported revenue of $578.1 million for 15Q2, a significant year-on-year drop due to the downturn of the gaming industry in Asia, the company said.   

 RWS’s revenue amounted to $577.8 million, a drop of 23 percent year-on-year. 

“The contraction is a result of the unfavourable global VIP premium business and rolling win percentage, causing a year-on-year decrease in gaming revenue of 28 percent,” the company said in the filing.

However, with cost cutting measures and the tax refund of $102.7 million, adjusted earnings before interest, tax, depreciation and amortisation of RWS was $300.9 million. 

“On a theoretical normalised hold basis and excluding the one-off tax refund, RWS would have generated an adjusted EBITDA of approximately $270 million.”    

Genting Singapore said its attractions achieved daily average visitation that exceeded 18,000 in 15Q2, an increase of 9 percent, due to the launch of rollercoaster Puss in Boots’ Giant Journey and re-launch of Battlestar Galactica. Hotels maintained an occupancy rate of 93 percent.  

The group added that due to the volatile currency markets, it suffered an unrealised foreign exchange loss during the quarter that is reflected in the EBITDA.   

“The group’s net profit for the quarter was also affected by fair value loss from our portfolio investments that is related to unfavourable market conditions in gaming industry. As of this quarter, this portfolio has been significantly reduced, with realised net gains over the lifetime of these investments.”

 

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