On the 15th May 2015, the first quarter profits for Genting Singapore have dropped 64% as VIP gaming declined and mass market gaming has?not increased. The company currently doesn’t see the end of the tunnel for VIP profit drops.
A year earlier, the net profit took a hit and decreased from S$257.5 million to $91.7 million. Earnings per share also took a dive?as they fell?72% to $0.52 cents. The revenue decreased 23% to S$639.2 million.
Earnings before interest, taxes, depreciation, and amortization were?at $228.1 million, which is down by 43% year on year.
The VIP revenue has been weak in the quarter and the industry is altering and adjusting strategy to what many are seeing as the new normal.
Attractions at Resorts World Sentosa include S.E.A. Aquarium, Southeast Asia’s only aquatic park integrated with marine life – Adventure Cove Waterpark, Southeast Asia’s first and only Universal Studios theme park – Universal Studios Singapore, and Singapore’s largest destination spa. In the first quarter of 2015 an average of?16,000 people visited the attractions every day. The 1,600 hotel rooms had a high occupancy of 93% with?S$381 as the daily average room rate.
The company has said the premium gaming business is under stress because of the regional environmental factors. They also said that they do not expect to have any relief in the medium term and are restructuring the operational marketing organization in order to adjust to these changes. They have also said that they have taken a cautious approach to granting credit in the current market.
Genting expects the 2015?non-gaming business to be strong. Events that will help the prediction include? Singapore’s Golden Jubilee celebrations including the?Southeast Asian Games (SEA Games). In the Jurong district they will also be opening a 557 room hotel?– expanding capacity by a third.