Genting Singapore grows profit, EBITDA in 2Q21

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Resorts World Sentosa

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Genting Singapore has continued to stay afloat in the absence of any significant international business, reporting a net profit of SG$88.2 million (US$65.0 million) through the first six months of 2021, reversing a loss of SG$116.7 million (US$86.0 million) recorded in 1H20.

The improvement came on the back of a 24% year-on-year increase in revenue to SG$554.8 million (US$408.7 million). Based on the companys previously reported revenue of SG$277.9 million (US$204.7 million) for the March quarter, revenue remained flat in 2Q21 at SG$276.9 million (US$204.0 million) while net profit increased from SG$34.5 million (US$25.4 million) in Q1 to SG$53.7 million (US$39.6 million) in Q2.

Gaming segment revenue at the companys Singapore integrated resort, Resorts World Sentosa, grew 61.4% year-on-year in 1H21 and 4.2% for the quarter (versus Q1) to SG$442.9 million (US$326.3 million) although 1H21 non-gaming revenue declined 28.3% year-on-year to SG$104.3 million (US$76.8 million).

Adjusted EBITDA grew by more than 300% year-on-year for the first six months of 2021 from SG$66.7 million (US$49.1 million) to SG$276.1 million (US$203.4 million).

Genting Singapore said it remains unclear when it can expect to see a more significant increase in its business volumes given the ongoing impact of the COVID-190 pandemic.

With cross-border travel being severely curtailed in our traditional markets, most of our key offerings at RWS continued to operate at considerably lower levels compared to pre-COVID-19 pandemic, it said.

While Singapore has progressively been reopening the economy at the start of the year, the emergence of a new virus variant and the detection of several clusters of infections, resulted in the Multi-Ministry Taskforce reintroducing stricter measures and tighter restrictions.

The current situation only caters to a limited market of the smaller local population. In the short term, we do not anticipate any measurable increase in business sentiment until we have greater visibility of the border openings.