Genting S’pore posts 4.3% drop in first-half profit to $84.4m despite revenue rise

SINGAPORE (THE BUSINESS TIMES) – Casino and resort operator Genting Singapore reported a 4.3 per cent fall in net profit for the first half of the financial year from the year-ago period, the company said in a filing on Friday (Aug 12).

Net profit for the six months ended June 30 came to $84.4 million, compared with a net profit of $88.2 million posted in the same period a year ago.

The results translate to earnings per share of 0.7 cent, against earnings per share of 0.73 cent in the previous financial year.

These figures came even as revenue rose 19.5 per cent to $663.1 million from $554.8 million previously, as Genting Singapore benefited from the lifting of Covid-19 restrictions and pent-up tourism demand. On April 1 this year, the Vaccinated Travel Framework came into effect to loosen entry requirements into Singapore.

However, Genting Singapore’s cost of sales stood at $463.0 million, up from $346.9 million in the first half of financial year 2021.

The leisure giant and casino operator grew its revenue in both its gaming and non-gaming sectors, although international tourism remained below pre-pandemic levels.

“We are embarking on a makeover of our tourism offerings to enhance the integrated resort’s appeal as a destination, to capitalise on the post-pandemic pent-up demand, in particular from the affluent regional market, said Genting Singapore.

“With refreshed product offerings targeted at the premium market, we are confident that return on invested capital will deliver significant future growth.”

The company noted that the casino licence for its Resorts World Sentosa integrated resort was renewed for another three years from Feb 6, 2022, which led to an increase in intangible assets.

The board has proposed an interim dividend of one cent per share, to be paid on Sept 20, 2022. No interim dividend was declared for the corresponding period in the previous financial year.

Shares of Genting Singapore closed down one cent, or 1.2 per cent, to 82.5 cents before the results were announced.