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Genting Singapore report second-half profit more than doubles to $255.7m as travel rebounds

SINGAPORE – Integrated resort (IR) operator Genting Singapore’s net profit for its second half has more than doubled, thanks to increased gaming and non-gaming revenues from the growth of Singapore’s international tourist arrivals.

Net profit for the six months ended Dec 31, 2022, rose to $255.7 million from $95.1 million in the same period a year prior.

This was mainly due to travel recovery gaining momentum in the second half of 2022, the operator of Resorts World Sentosa (RWS) said in a regulatory filing on Monday.

Revenue for the group more than doubled to $1.1 billion in the second half of 2022, up from $512.5 million in the second half of 2021.

This was made up primarily of gaming revenue, which posted a more than 100 per cent rise to $753.7 million, and non-gaming revenue, which similarly more than doubled to $307.8 million from the corresponding period last year.

A final dividend of two cents a share was proposed for the year, up from one cent per share the year before.

For the full year, Genting Singapore’s revenue came in at $1.73 billion, up 62 per cent from $1.07 billion in financial year 2021.

Net profit for financial year 2022 was $340.1 million, up 85 per cent from $183.3 million a year earlier.

Earnings per share stood at 2.82 cents for financial year 2022, up 86 per cent from 1.52 cents for the previous year.

“With the recovery of Singapore’s international visitors, the group’s performance rebounded strongly, with RWS outperforming significantly over the pandemic years,” said Genting Singapore.

However, flight capacity and economic uncertainties will moderate the pace of recovery, said the IR operator, adding that it remained “cautiously optimistic for a full recovery” in the medium term.

The overall profit margin for financial year 2022 was impacted by higher utility tariffs, increased casino tax rates and accelerated depreciation on certain assets in connection with the renovation of Festive Hotel and RWS 2.0 expansion plans, Genting Singapore said.

RWS 2.0 refers to Genting Singapore’s expansion plans for the IR. The works have commenced and include ongoing construction of the Singapore Oceanarium, Minion Land at Universal Studios Singapore, and supporting infrastructure facilities to cater to the overall expansion of RWS.

The planned extension of Singapore’s other IR, Marina Bay Sands, is expected to be delayed again, with no confirmation on when construction will start, its American owner Las Vegas Sands said last week in its annual report.

Genting Singapore shares were trading up one per cent at $1.01 at the close on Tuesday. THE BUSINESS TIMES

Source: The Straits Times