SINGAPORE – The economic rebound from the pandemic gathered pace at resort operator Genting Singapore and turbocharged its full-year results.
Earnings hit $611 million for the 12 months to Dec 31, 2023, up a striking 80 per cent from the $340 million recorded a year earlier, the firm noted on Feb 22.
Revenue was more restrained at the Singapore unit of Malaysian gambling and leisure group Genting, coming in at $2.4 billion, up 40 per cent from $1.7 billion in 2022.
The bumper numbers were driven by the integrated resort at Sentosa, which recorded a 34 per cent jump in gaming revenue to $1.6 billion over the 2022 financial year, while non-gaming turnover rose 57 per cent to $769 million.
Resorts World Sentosa, which also operates the Universal Studios theme park and the SEA Aquarium, delivered adjusted earnings before interest, tax, depreciation and amortisation of $1.1 billion, around 86 per cent of pre-Covid-19 levels.
The group, which is controlled by Malaysian billionaire Lim Kok Thay, said the fourth quarter saw “respectable” growth in gaming turnover but non-gaming revenue was hit by various factors, including the strong Singapore dollar, persistently high airfares and accommodation costs and a slower-than-expected return of Chinese tourists.
The firm warned that its near-term prospects may be unpredictable due to macroeconomic and geopolitical factors beyond its control amid the ongoing post-pandemic recovery.
Genting, which ended the year with almost $4 billion in cash and cash equivalents, said developments at the Forum Lifestyle zone, Universal Studios Singapore’s Minion Land and the Singapore Oceanarium are on track for a soft opening in early 2025.
It said tenders have been issued for the new waterfront development featuring 700 hotel keys and lifestyle offerings.
A final dividend of two cents a share has been proposed, unchanged from 2022.
Las Vegas Sands, parent of Genting rival Marina Bay Sands (MBS), reported in January that net revenue for its Singapore integrated resort came in at US$1.1 billion (S$1.4 billion), up 55.6 per cent from a year earlier. Casino revenue surged 84.3 per cent to US$741 million.
MBS is also upgrading its facilities and will be injecting an additional US$750 million to improve its luxury offerings.
Genting shares closed up 1 per cent at $1.03 before the results were announced on Feb 22.
