Genting Singapore's Strong Q1 Suggests Singapore is Back
Published May 16, 2022
Integrated resorts boosted totals in Singapore with added revenue for Q1 2022.
Singapore's central gaming organization Genting Singapore is showing a much-needed rebound from Corona after revenue and net profits came in robust for Q1.
Year-on-Year Rebound
The gains reported by casino operator Genting Singapore signal a year-on-year increase in revenue and net profit for the first quarter of the fiscal year 2022 from January to March.
The easing of many Corona restrictions in the country has driven the growth.
The Q1 Totals
The totals for the quarter included overall revenue gains through 31 March of S$314.5m (£184.7m/€216.7m/US$225.6m), good for a substantial 20.5% from last year's figure of $261.0m.
IR Contribution
Additional rear-on-year revenue from gaming operations from Singapore's integrated resort was up 8.1% to $234.5m, with the venue's non-gaming revenue jumping 25.7% to $76.3m.
Other Contributors
Additional revenue for Genting Singapore was gained from the investment business, hospitality, and support services space which positively vaulted 931.8% year-on-year to $3.8m.
EBITDA Gains
With full financial figures not released, Genting Singapore did report that adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) gained 2.5% to $124.8m.
Softening The IR Blows
The losses hurt less as well, with EBITDA from Singapore's integrated resort falling 3.3% to $130.6m, while the investment business, other hospitality, and support services posted a loss of $5.7m for the quarter, down from a $7.0m loss last year.
Overall EBITDA
Overall EBITDA for Genting Singapore overcame $3.2m in net exchange loss relating to investments, share-based payments, and other expenses, for a total EBITDA of $121.7m, up 3.1% year-on-year, with net profit after tax improving 17.1% from last year at $40.4m.
Genting Rep Speaks
Genting Secretary Ong Jiq Her expressed “cautious optimism” for “the recovery trajectory” in light of Singapore's reopening its international borders to fully vaccinated travelers from the first day of Q2 April 1, 2022, looking forward to “further relaxation of Covid-19 related regulations.”
Adaptations on the Horizon
As far as the added and needed additional revenue sought from Singapore's recently launched IR project, Jig Her expressed the environmental factors affecting recovery, identifying still limited flight schedules into the region, high airfares, and lingering travel restrictions from many countries.
Outlook
If Genting Singapore can hold to the Secretary's agenda of harnessing all opportunities to attract and engage visitors, Singapore has a real opportunity to build on the Q1 success and emerge from the pandemic stronger than before. All that remains to be seen is what adaptations Genting Singapore implements next, and this will be a story worth watching in the coming months in one of Southeast Asia's most concentrated areas of wealth.
