Land based casino operator Genting Singapore has reported an increase in revenue and net profits for the first three months of its fiscal year 2023.
After the elimination of nearly all measures related to pandemic, the group stated that the increase was driven by a continuing recovery in regional travel and gaming.
The operator noted that the recovery of non-gaming revenue was also constrained by the lagging arrivals of overseas visitors from its traditional source markets. Meanwhile, airline capacity constraints continue to limit incoming mass leisure tourism traffic.
The operator also said that higher airfares during festive seasons affected visitor volumes, which resulted, on a quarterly basis, in a drop of 15% in non-gaming revenues.
Q1
Revenue in the three months to 31 March was S$484.5m (PS290.4m/EUR333.3m/US$362.2m), up 54.1% from $314.5m in the corresponding period last year.
The gaming revenue grew by 45.0% to $339.9m, and non-gaming revenues increased 90.0% on an annual basis to $144.4m. Other revenue, which is derived from the investment business, other hospitality services and support, and other support services, decreased 95.5%, to $169,000.
Earnings before interest, taxes, depreciation, and amortization (EBTIDA), adjusted for the first quarter, were $191.7m. This represents a 53.6% increase. The EBITDA for Singapore integrated resorts was $196.6m, but this was offset slightly by a $4.9m operating loss.
EBITDA increased by 55.9% when $2.0m of other costs were included. Net profit rose 219.8% year-on-year to $129.2m.
Look ahead
In terms of future expansion, Genting Singapore’s company secretary Liew La Hing stated that the business would continue to follow its Resorts World Sentosa 2.0 strategy, which will see it roll out a number of initiatives in order to increase the brand value.
Hing stated that the group was committed to improving RWS’s brand identity, which is a premium destination for affluent and trendy customers.
We will invest in enhancing all of our product offerings. This investment will take place in two stages. RWS 1.5 is the first stage of this project. It involves reinventing and innovating RWS’ facilities to increase its destination appeal.
This strategy includes the 389-room Festive Hotel which has been completely renovated and rebranded Hotel Ora. It began receiving guests in April of 2023. The Forum at RWS will undergo a major transformation starting in May 2023. This central cluster, which is the first point of contact for visitors to the integrated resort, was completely renovated and rebranded Hotel Ora.
Construction on Minion Land, at Universal Studios Singapore, and the Singapore Oceanarium is progressing as planned, with a soft opening scheduled for 2025.
