SINGAPORE: Genting Singapore Plc narrowed its net loss by 38% to S$10.54 million (RM31.78 million) or 0.09 cent loss per share for the second quarter ended June 30, 2016 (2QFY16), from S$16.93 million or 0.14 cent loss per share a year ago, due to the recognition of a fair value loss of S$95.04 million on derivative financial instruments in 2QFY15.
Revenue for 2QFY16 fell 17% to S$480.89 million from S$578.15 million in 2QFY15, mainly contributed by Resorts World Sentosa (RWS) which posted revenue of S$480.4 million and adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of S$123.5 million.
“The Asian gaming market continues to face challenges. RWS has been able to maintain good earnings in the mass and premium mass market despite a weak environment,” it said in a filing with the Singapore exchange today.
“However, our premium market has been significantly impacted by a low win percentage. On a theoretical normalised hold basis, RWS would have generated revenue and adjusted ebitda of S$552.9 million and S$192.3 million, respectively. For the comparative quarter in 2015, adjusted ebitda included a one-off property tax refund of S$102.7 million,” it added.
Genting Singapore said RWS’s non-gaming business continued to perform well in 2QFY16, with the combined attractions sector maintaining a daily average visitation exceeding 18,000 this quarter and hotel businesses recording an overall occupancy rate of 93%. For the half-year period ended June 30, 2016 (1HFY16), however, Genting Singapore’s net profit plunged 99% to S$305,000 from S$45.74 million a year earlier, while revenue fell 11% to S$1.09 billion from S$1.22 billion in 1HFY15.
“The regional economic environment continues to be uncertain, and we continue to exercise caution with our VIP gaming business. Our regional premium mass and mass market remains steady.
“We have implemented several cost efficiency initiatives where there were once off costs impacting this quarter’s results. Such initiatives will continue into the next quarter, and we are confident that these programs will improve earnings in the following quarters,” said Genting Singapore.On its joint venture integrated resort project in Jeju, South Korea, the group said the development is progressing well and on track for a soft opening of Phase 1 in the fourth quarter of 2017. Genting Singapore shares closed one cent or 1.27% higher at 79.5 cents today, giving it a market capitalisation of S$9.55 billion.
