The operator behind the Resorts World Sentosa development, Genting Singapore, has released its third-quarter financial results showing that its net profit after tax more than doubled when compared with the same three-month period in 2015 to hit $98.72 million.
Genting Singapore revealed that its gross profit for the three months to the end of September improved by 14.4% year-on-year to $155.21 million while its operating profit swelled by 58.8% to $131.73 million.
“Resorts World Sentosa delivered a healthy set of results against the backdrop of a challenging operating environment,” read a statement from Genting Singapore. “On the quarter-on-quarter basis, Resorts World Sentosa revenue increased by 21% from the favorable performance of the attractions and hotel business as well as improved VIP rolling win percentage. Our Universal Studios Singapore, Sea Aquarium and Adventure Cove Waterpark attractions recorded a daily average visitation of over 20,000. Hotel occupancy across all our hotels maintained strong occupancy rates of over 92%. Adjusted earnings before interest, tax, depreciation and amortization doubled as a result of increased revenues, improvements in operating margins arising from cost efficiency initiatives implemented from the last quarter as well as lower impairment of trade receivables.”
However, the news was not all good with overall revenues for the third quarter falling by 8.5% year-on-year to $420.42 million as gaming takings decreased by 9.8% to $294.57 million while earnings from its non-gaming activities registered a 5.7% decline to $125.27 million.
“With the ongoing uncertainty in Asia’s gaming industry, we remain cautious of the VIP business,” read the statement from Genting Singapore. “Since early-2016 we have scaled down this business segment and the provision for bad debts related to this segment has consequently been reduced. We will continue to see improved margins in this segment over the next few quarters. Together with a measured approach in the premium mass-market, we are confident of a sustainable earnings growth into the next year.”
But, the Singapore firm declared that its third-quarter earnings before interest, tax, depreciation and amortization came in at $169.62 million, which represented a 32.4% boost when compared with the same period in 2015, while sales costs dropped by 18.2% to $265.19 million.
“The group performed very well in this third quarter of 2016, with adjusted earnings before interest, tax, depreciation and amortization doubling to $168.91 million over the last quarter and grew 12% on a year-on-year basis,” read the statement from Genting Singapore. “This achievement has been the fruit of our ongoing commitment to focus on better margin business and managing operational efficiency for better margins.”
The third quarter moreover saw Genting Singapore register a 92% occupancy rate for its hotels while it repaid some $280.19 million of its previous bank borrowings.
“As Asia’s middle-class continues to grow and prosper, our world-class attractions have bee a foundation for us to market to the region,” read the statement from Genting Singapore. “Our uniquely Singapore-style integrated resort concept has served us well to position our resort branding. We continue to execute our transformational initiatives to anchor Resorts World Sentosa as Asia’s premium lifestyle destination.”