Q3 results 2020

Genting Singapore looks to locals in recovery plan

2 minutes read
Genting Singapore, a subsidiary of the Malaysian conglomerate, is looking to attract local trade to its integrated resort as novel coronavirus (Covid-19) continues to limit international visitation to the property.

While its Universal Studios Singapore theme part and S.E.A. Aquarium – both part of Resorts World Sentosa – were able to reopen from 1 July, Genting said it continued to experience weak demand. 

As such revenue for the third quarter was down 49.5% year-on-year at SGD$301.0m (£169.7m/€188.8m/$223.6m). 

While gaming remained the largest contributor to revenue, its total for the three months to 30 September fell 41.0% to SGD$212.9m. Revenue from non-gaming amenities, meanwhile, fell 74.5% to SGD$59.9m, though revenue from its investment and hospitality businesses jumped to SGD$28.2m.

While Genting Singapore did not provide a full breakdown of third quarter performance, it said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 46.4% to SGD$149.0m. 

After financial items, depreciation and amortisation, interest and taxes, net profit for the quarter was down 65.7% at SGD$54.4m. 

Despite the year-on-year decline, the Q3 performance represented a significant uptick from the second quarter of 2020, in which Resorts World Sentosa was closed. For that period revenue plummeted 93.5% to SGD$41.3m, with the business’ net loss coming to SGD$163.3m. 

As a result of the “unprecedented crisis” for Singapore’s travel and tourism industry, Genting Singapore said it was looking to “re-imagine and re-adapt” its guest offerings. 

“For example, with travel restrictions still in place and the festive season round the corner, Resorts World Sentosa has rolled out specially-curated staycation packages for local residents by pairing up our uniquely themed destination hotels with trips to our attractions or dining experience at our award-winning restaurants,” it said.

It will also continue with plans for a SGD$4.5bn “mega expansion” of the resort, through which it aims to consolidate the property’s position as Singapore’s leading leisure and tourism destination. 

The subsidiary will also look further afield, revealing that it is “keenly exploring” the opportunity of bidding for one of Japan’s integrated resorts licences in Yokohama.

“We will evaluate the conditions of the request for proposal (RFP) and the investment environment when the formal bidding process begins and will respond with a proposal if these conditions meet the group’s investment criteria,” it said.

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