Genting Singapore has reported a 49% year-on-year fall in profit to SG$95.1 million (US$71 million) in the six months to 31 December 2021, citing a decrease in visitation at Resorts World Sentosa (RWS) as a result of the COVID-19 pandemic.
The decline follows a 17% drop in revenue to SG$512.5 million (US$382 million), with gaming revenue down 16% to SG$359.7 million (US$268 million). Adjusted EBITDA fell 52% to SG$171.9 million (US$128 million).
“Our IR experienced a decrease in [visitation], largely due to an increase in COVID-19 community cases and the recent emergence of the Omicron variant,” Genting Singapore said in its results announcement.
“A series of enhanced safe management measures, such as the reduction in group size for social gathering and prohibition of dining-in at Food and Beverage (F&B) establishments, were introduced to contain the spread of the virus. These had a profound negative impact on our operating capacity and visitor arrivals.”
For FY21, revenue remained flat year-on-year at SG$1.07 billion (US$797 million) while profit was 165% higher than in 2020 at SG$183.3 million (US$136 million). Adjusted EBITDA grew 5% to SG$448.0 million (US$334 million).
The company said it is optimistic that 2022 will see a steady increase in business as international borders start reopening.
“We are hopeful that with further relaxation of Singapore’s COVID-19 related regulations and gradual resumption of mutual vaccinated travel lanes (VTLs), more travellers will return to Singapore in 2022,” it said. “However, such tourism flow is expected to be mostly small groups of FIT (Free Independent Traveller) leisure and business travellers.
“As we anticipate a gradual return of visitors from our traditional markets over the next two years, we remain resilient and continue to harness opportunities to refresh and build new visitor offerings to emerge stronger from the pandemic for the return of visitors to pre-COVID levels.”
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