Genting posts net loss

Resorts World Sentosa, Singapore. Source: Wikimedia

Genting Singapore narrowed its net loss by 38 per cent to S$10.54 million (US$7.85 million) or 0.09 cent loss per share for the second quarter ending in June 30, from S$16.93 million or 0.14 cent loss per share last year, due to the recognition of a fair value loss of S$95.04 million on derivative financial instruments in the second quarter of 2015.

Revenue for this quarter dropped 17 per cent to S$480.89 million from S$578.15 million year-on-year, mainly contributed by Resorts World Sentosa (RWS) which posted revenue of S$480.4 million and adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of S$123.5 million.

Genting shares closed one cent or 1.27 per cent up to 79.5 cents yesterday, before its earnings were announced.

“We have implemented several cost efficiency initiatives where there were once off costs impacting this quarter’s results. Such initiatives will continue into the next quarter, and we are confident that these programs will improve earnings in the following quarters,” Genting Singapore announced in a statement.

“The Asian gaming market continues to face challenges. RWS has been able to maintain good earnings in the mass and premium mass market despite a weak environment,” it said.

“However, our premium market has been significantly impacted by a low win percentage. On a theoretical normalised hold basis, RWS would have generated revenue and adjusted ebitda of S$552.9 million and S$192.3 million, respectively. For the comparative quarter in 2015, adjusted ebitda included a one-off property tax refund of S$102.7 million,” the firm announced.

Genting Singapore said RWS’s non-gambling interests continued to perform well during the quarter, with the combined attractions sector maintaining daily average visitors of more than 18,000 this quarter and hotels recording an overall occupancy rate of 93 per cent.

For the first half of this year, the firm’s net profit tumbled 99 per cent to S$305,000 from S$45.74 million a year earlier, while revenue dropped 11 per cent to S$1.09 billion from S$1.22 billion year on year.

“The regional economic environment continues to be uncertain, and we continue to exercise caution with our VIP gaming business. Our regional premium mass and mass market remains steady.”