Genting Singapore saw its net profit soar by 78% to SG$685.6 million in 2017, boosted by a revised commission structure for its VIP gaming business and increased visitation at Resorts World Sentosa.
Combined revenue for the 12 months to 31 December grew 7% year-on-year to SG$2.39 billion, with gaming revenue up 10% to SG$1.75 billion including 4% year-on-year growth in 4Q17 to SG$580.1 million. Adjusted EBITDA increased 48% to SG$1.15 billion.
The results included the disposal of Genting Singapore’s interest in Korean integrated resort Jeju Shinhwa World for SG$596.3 million, which brought with it a gain on disposal of SG$96.3 million. However, the company said the revenue increase was underpinned by “the stronger underlying performance of the leisure and hospitality segment as a result of higher business volume” with the group’s major attractions – Universal Studios Singapore, the S.E.A. Aquarium and Adventure Cove Waterpark – each enjoying increased visitation of between 6% and 9%.
Genting Singapore added that “the Asian gaming and tourism industry showed signs of rebound as a result of good economic growth in our main geographic markets (in 2017). Together with a business strategy and plan that was well executed, especially in the gaming business segment, we have been able to significantly boost both our revenues and profitability.
“Our focus on the regional premium mass business saw good momentum in revenue growth. RWS is Asia’s leading premium lifestyle tourism destination, accounting for more than one third of international visitor arrivals to Singapore. We continue to plan and develop our offerings to yield quality visitors.
“During the year, we pioneered first-of-its-kind major lifestyle events in the region by seamlessly integrating gourmet experience and entertainment to tap into the growing affluent Asian market.”
Genting Singapore said it would continue to re-invest in Resorts World Sentosa to remain attractive to international customers. The company has also stated its intention to pursue a Japan IR license.
“The Group continues to be engaged in this significant business opportunity and management is diligently preparing for the eventual bidding process,” Genting Singapore said of Japan. “Many global gaming operators have pronounced their very keen interest to bid and we will be facing fierce competition for the limited number of licenses.”
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