In a response to shareholders questions ahead of its board meeting, Genting Singapore stated that the improvement in Chinese arrivals is expected to contribute positively to its performance and touted future non-gaming offerings as a response to the warning issued by Chinese authorities for the country’s citizens to avoid gaming in the city-state.
The group’s Annual General Meeting is scheduled for April 18th, with Genting Singapore Limited’s Board of Directors responding to seven questions submitted by shareholders ahead of the meeting.
One of the inquiries centered on the percentage of guests that hailed from China and the impact any change in visa policy could have on Resorts World Sentosa operator.
According to the Genting management, China surpassed Indonesia to become the biggest source of tourists for Singapore in February 2024, with some 327,000 Chinese visitors arriving the city, or 30 percent of all foreign arrivals.
‘According to the Singapore Tourism Board, the increase in numbers was due to the
relaxation of visa regulations between Singapore and China that took effect on 9
February 2024. The improvement in Chinese arrivals is expected to contribute
positively to RWS’ performance,’ the group pointed out.
When questioned to address a recent warning by the Chinese Embassy in Singapore for Chinese citizens to stay away from gambling, Genting preferred to center on its efforts to develop non-gaming offerings for ‘leisure and business visitors from the region and beyond’.
Genting noted that the phased opening of our exciting new developments such as the Asia
Premiere with the largest-ever engagement of Harry Potter: Visions of Magic in Q4
2024, followed by the Singapore Oceanarium, Illumination’s Minion Land at the
Universal Studios Singapore, and a wide variety of upscale restaurants, specialty shops
and concept stores in the first quarter of 2025 would continue to ‘elevate’ its appeal and draw more guests ‘from diverse segments and new markets’.
Financing issues
In response to shareholder inquiries regarding financing for the ambitious SG$6.8 billion ($5 billion) investment earmarked for Resorts World Sentosa (RWS) transformation, Genting Singapore has unveiled its strategy.
The company’s Board of Directors, as of November 10, 2023, has greenlit this substantial investment, intending to cement RWS as a tourism hotspot over the next eight years.
Genting Singapore reassured investors that this hefty investment will be primarily funded through internal resources, alleviating concerns about immediate earnings impact.
Genting Singapore reported a net profit of SG$611.6 million ($456 million) for the fiscal year 2023, marking an 80 percent increase year-over-year.
Resorts World Sentosa (RWS) delivered an Adjusted EBITDA of SG$1.1 billion ($788 million), representing approximately 86 percent of the pre-Covid Adjusted EBITDA.
Concerns regarding share awards for Independent Directors (IDs), particularly those involved in the administration of the scheme, were also addressed by Genting Singapore.
The company clarified that under its Performance Share Scheme, all Independent Non-Executive Directors, including members of the Remuneration Committee, are eligible for and receive share awards.
‘These awards recognize their contributions to the group and acknowledge the heightened regulatory compliance and potential risk exposure inherent in the gaming industry,’ the company underlined.
Genting Singapore emphasized that such share awards aim to align the interests of IDs with those of shareholders, subjecting them to vesting conditions and selling moratoriums to ensure long-term commitment.
