Local gamblers drive Genting Singapore back into the black with 3Q earnings of $54.5 million
Casino operator Genting Singapore has staged a strong sequential recovery between 2Q and 3Q ended Sept 30, as lockdown measures were eased somewhat.
In a quarterly business update on Nov 14, the company, which operates Resorts World Sentosa reported earnings of nearly $54.5 million for 3Q, compared to losses of $163.3 million in the preceding quarter ended June 30.
Revenue for 3Q was $300.1 million, versus just $41.3 million in 2Q.
Despite the q-o-q improvement, Genting Singapore was still reeling from the pandemic. On a y-o-y basis, earnings was down 66% and revenue has halved.
Even with in-bound tourism virtually absent, and even with the economic crisis, plenty of local gamblers were still trying their luck at the casino. During 3Q, Genting Singapore generated $212.9 million in gaming revenue, down 41% y-o-y.
In contrast, in 2Q, when operations were largely halted, there was still some $6.5 million in gaming revenue.
Non-gaming revenue, on the other hand, improved from $16.3 million in 2Q to $$59.9 million in 3Q.
In its business update, Genting Singapore calls Covid-19 an “unprecedented crisis” for the travel and tourism industry.
It is adapting by offering staycation packages to locals and also theme-based dining experiences.
Genting Singapore is reiterating its commitment to develop the $4.5 billion mega expansion for RWS, which was announced last September.
In addition, Genting Singapore is “keenly exploring” the Yokohama integrated resort opportunity in Japan.
“We will evaluate the conditions of the Request-for-Proposal and the investment environment when the formal bidding process begins and will respond with a proposal if these conditions meet the group’s investment criteria,” states the company.
Genting Singapore last traded on Nov 13 at 74 cents, unchanged for the day but down 25.7% year to date.