Genting Singapore sees 4Q earnings rise 12% to $150 mil on higher visitors, hotel occupancy

Genting Singapore sees 4Q earnings rise 12% to $150 mil on higher visitors, hotel occupancy

Michelle Zhu
21/02/19, 05:38 pm

SINGAPORE (Feb 21): Genting Singapore (GENS) announced earnings of $150.2 million for the 4Q ended Dec 2018, rising 12% y-o-y from its earnings of $134 million in 4Q17 due to higher revenue.

This brings the group’s earnings for the full year to $755.4 million, up 10% from $685.6 million in the previous year.

Revenue for the latest quarter under review grew 15% on-year on the back of strong performance from the attractions business, which did well with an average daily visitation of over 21,000. There was also increased average visitor spend across all offerings including Universal Studios Singapore, S.E.A. Aquarium and Adventure Cover Waterpark.

Meanwhile, the hotels segment – which includes hotels like Hard Rock Hotel and Equarius Hotel – maintained a strong occupancy rate of 95%.

Adjusted EBITDA grew 12% y-o-y to $286 million from $255.1 million in 4Q17.

As at end-Dec 2018, cash and cash equivalents stood at $4.2 billion compared to $3.8 billion a year ago.

GENS is proposing a final dividend of 2 cents for FY18, unchanged from a year ago.

Going into 2019, the group says it remains cautious of an ambiguous economic environment and ongoing geopolitical friction that is clouding the growth of the Asian gaming and tourism market. It also intends to continue refining its marketing focus and improve its customer experience, bearing in mind the increasing competition from newly-opened gaming facilities as well as aggressive marketing tactics.  

As GENS awaits the Japanese government’s published regulations for the establishments of integrated resorts (IRs), the group says it is deploying significant resources on the ground and actively developing bid design and concepts as it engages stakeholders to prepare for the formal bidding process, which is expected to commence in 2H19.

“We are dedicating substantial resources in the planning and reinvestment of Resorts World Sentosa to ensure that we remain the top resort destination in Asia Pacific,” says the group of its Singapore operations.

Shares in GENS closed 1 cent higher at $1.11 on Thursday.

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