Genting Singapore, the operator of Resorts World Sentosa (RWS) in Singapore, reported a net profit after tax of SG$79.4 million ($59.8 million) for the third quarter of FY2024, ending September 30th.
This represents a 63 percent year-on-year decline and a 27 percent quarter-on-quarter drop, reflecting a slower-than-expected recovery in international visitor arrivals to Singapore, increased competition, and global uncertainty.
According to the financial results released on Thursday, the company’s total revenue for the quarter decreased by 19 percent year-on-year to SG$561.9 million ($423.5 million). The decline was primarily driven by a 28 percent year-on-year drop in gaming revenue from the integrated resort (IR), Resorts World Sentosa (RWS).
However, non-gaming revenue saw a slight increase, rising by 1 percent year-on-year to SG$231.8 million ($174.7 million). Revenue from other segments, including the group’s investment business and support services, rose by 2 percent year-on-year to SG$144,000 ($108,529).
Total revenue dropped by 2 percent quarter-on-quarter, mainly due to lower VIP rolling volume and win rates. Despite the closure of the Hard Rock Hotel for renovations and rebranding and the SEA Aquarium’s reduced schedule (it was closed two days a week for expansion into the Singapore Oceanarium), the group saw a 22 percent quarter-on-quarter increase in non-gaming revenue, largely driven by seasonality.
For the quarter, EBITDA fell by 56 percent year-on-year to SG$152.4 million ($114.9 million), while adjusted EBITDA dropped by 53 percent year-on-year to SG$163.9 million ($123.5 million).
According to official statistics, Singapore’s visitor arrivals for the first nine months of this year reached 10.14 million, marking a 171.0 percent year-on-year increase. This figure represents approximately 70.8 percent of the total arrivals for the same period in 2019, the last pre-pandemic year, when the city-state recorded 14.33 million visitors. The largest source markets for Singapore were Indonesia, China, and Malaysia.
In its press release accompanying the financial results, Genting Singapore announced that RWS had awarded the construction contract for its Waterfront development, with work scheduled to commence in November 2024.
The Waterfront development will include two new luxury hotels featuring 700 rooms, a four-story podium housing entertainment offerings, as well as retail and dining outlets.
Meanwhile, Genting Singapore emphasized that progress on the RWS 2.0 developments is ongoing, with a total investment of $5 billion planned by 2028. Management affirmed that RWS will unveil new and enhanced visitor experiences progressively in phases.
Singapore’s casino resort market is dominated by a duopoly: Resorts World Sentosa, operated by Genting Singapore, and Marina Bay Sands, run by a subsidiary of Las Vegas Sands.
