Genting Singapore reported a 15% increase in revenue to SG$664.8 million for the three months to 31 December 2018, driven by higher VIP rolling chip volume and strong hold. Net profit grew 12% to SG$150.2 million, with Adjusted EBITDA also rising 12% to SG$286 million.
Casino revenue at the company’s flagship integrated resort, Resorts World Genting, increased 20% to SG$444.2 million, while non-gaming revenue rose 5% to SG$220 million.
Although Genting Singapore didn’t provide a full breakdown of its 4Q18 results, brokerage Sanford C Bernstein estimates that rolling chip increased by around 9% year-on-year to SG$8.2 billion with GGR up 38% to SG$277 million.
However, Bernstein analysts add, “Higher VIP volumes are likely being driven by more credit extension. We are concerned about the increase in bad debt provision and don’t buy management’s downplay – saying it’s only a ‘blip’ from quarter to quarter and the company is maintaining the same credit extension level.”
VIP hold was 3.4%, significantly higher than the Singapore average of 2.85% and worth around SG$10 million in hold impact according to Bernstein.
Genting Singapore’s market share of GGR grew from 39% to 41% following a tough quarter for its local rival Marina Bay Sands.
Revenue for the full year in 2018 increased 6% to SG$2.5 billion with Adjusted EBITDA up 7% to SG$1.26 billion.
The company continues to focus much of its future interest on Japan, stating in its earnings release that “we are looking forward to the Japanese Government publishing detailed regulations for the establishment of IRs. In the meantime, the group is deploying significant resources on the ground and actively developing bid design and concepts, and engaging with stakeholders to prepare for the formal bidding process, which is expected to commence in the second half of 2019.”
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