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

By: 
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.

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion -- especially in the rollout of the next generation 5G wireless network globally -- in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with 25....
Read More >>

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....
Read More >>

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....
Read More >>