Genting Singapore, a prominent casino operator, has announced positive financial results for the first quarter of its 2022 fiscal year. The company experienced a year-on-year increase in both revenue and net profit, benefiting from the easing of Covid-19 restrictions in Singapore. While adjusted EBITDA declined slightly due to higher expenses and the expiration of government support measures, the company remains cautiously optimistic about the recovery trajectory as Singapore reopens its borders to vaccinated travelers.
Revenue Growth:
Genting Singapore’s overall revenue for the first quarter ending on March 31, 2022, reached S$314.5m, marking a robust increase of 20.5% compared to the previous year. Gaming operations at the integrated resort contributed significantly to this growth, with gaming revenue rising by 8.1% to $234.5m. Non-gaming revenue also showed a substantial increase of 25.7% to $76.3m. Furthermore, the operator’s investment business, hospitality, and support services recorded a remarkable surge of 931.8% year-on-year, amounting to $3.8m in revenue.
Adjusted EBITDA and Net Profit:
Although Genting Singapore did not disclose its complete financial figures for the quarter, adjusted EBITDA declined by 2.5% to $124.8m. This decrease can be attributed to higher utilities expenses and the expiration of Covid-19 government support measures. The Singapore integrated resort’s EBITDA also saw a slight decline of 3.3% to $130.6m. However, the investment business, other hospitality, and support services narrowed their losses to $5.7m compared to $7.0m in the previous year. Considering factors such as net exchange loss, share-based payment, and other expenses, the company reported an EBITDA of $121.7m, reflecting a 3.1% increase year-on-year. Net profit after tax rose by 17.1% to $40.4m.
Outlook and Recovery:
Genting Singapore remains cautiously optimistic about the recovery trajectory as Singapore gradually reopens its international borders to fully vaccinated travelers. The company anticipates a moderated pace of recovery in leisure travel due to limited flight schedules, high airfares, and ongoing travel restrictions on visitors from certain countries.
While encouraged by the gradual increase in footfall to Resorts World Sentosa, the integrated resort operated by Genting Singapore, the company acknowledges the challenges ahead. Genting Singapore is committed to seizing opportunities to refresh its offerings and develop new visitor experiences to emerge stronger from the pandemic and capture any upswing in demand.
Genting Singapore’s first-quarter results showcase revenue and net profit growth, driven by the easing of Covid-19 restrictions in Singapore. The company’s gaming operations and non-gaming segments performed well, contributing to the overall positive financial performance.
Although adjusted EBITDA declined slightly, Genting Singapore remains cautiously optimistic about the recovery trajectory, acknowledging the challenges posed by travel restrictions. The company continues to focus on enhancing its offerings and positioning itself to capture increased demand as the industry rebounds.