Genting Singapore posted a 12% gain in the October-December 2018 period in terms of net profit, saying that over the year it had seen an encouraging performance in both gaming and non-gaming business, boosted by its marketing efforts on the premium mass segment.
Net profit came in at S$150 million (about US$111 million). Revenue gained 15% to S$665 million (about US$492). Revenue from gaming during the quarter jumped 20% to S$444 million (about US$329).
For the full year, Genting, which operates the Resorts World Sentosa property in Singapore, said profit gained 28% after stripping out a one-off gain from the prior year from the sale of its stake in an IR in South Korea.
Analysts at Bernstein Research, however, were unimpressed, saying the result was below its expectations.
“Higher VIP volumes (+10% year-on-year) are likely being driven by more credit extension. We are concerned about the increase in bad debt provision, and don’t buy management’s downplay, saying it’s only a “blip” from quarter to quarter and the company is maintaining same credit extension level,” they said.
Resorts World Sentosa hosts the Universal Studios theme park in Singapore, as well as a large aquarium. The company said it had seen average daily visitation of more than 21,000 people to its attractions and an increase in visitor spending.
In its results announcement, Genting reiterated its interest in Japan and said it was looking forward to seeing the government’s detailed regulations for the establishment of IRs. “In the meantime, the group is deploying significant resources on the ground and actively developing bid design and concepts, and engaging with stakeholders to prepare for the formal bidding process, which is expected to commence in the second half of 2019,” it said. (AGB)