SINGAPORE (Nov 6): Genting Singapore announced that 3Q17 earnings increased 35% to $143.8 million from $106.9 million in 3Q16.
In the third quarter ended September, the group’s revenue saw an increase of 8% to $629.9 million compared to $581.5 million a year ago, supported by a stronger VIP and premium mass business volume.
The attractions business performed well with higher average visitor spend and a 5% growth in the daily average visitorship that exceeded 21,000. Hotel business registered a solid average occupancy rate of 93%.
The adjusted EBITDA also surged 37% y-o-y to $320.1 million, underpinned by an improved operating margin and lower net impairment on receivables as a result of a more measured credit policy.
However, cost of sales decreased 11% to $325.5 million from $366.8 million last year.
This brought 3Q17 gross profit to $304.3 million, 42% higher than $214.7 million the previous year.
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Other operating income decreased 32% to $19.1 million from $27.9 million.
Meanwhile, other operating expenses increased almost tenfold to $39.9 million from $4.1 million the same period last year.
On Sept 12, the group redeemed its $1.8 billion 5.125% perpetual subordinated capital securities. It was reported as part of the cash outflow under financing activities. This resulted in a reduction in current assets.
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Hence, cash and cash equivalents as at Sept 30 stood at $3.93 billion.
An interim dividend of 1.5 cents per ordinary share was declared for the financial year ending Dec 31, 2017, and paid to shareholders on Sept 20.
Looking ahead, Genting Singapore says the repositioning of Resorts World Sentosa (RWS) will broaden the group’s appeal to attract premium customers, which is scheduled for soft opening during the Christmas holiday season.
Shares in Genting Singapore closed 1 cent higher at $1.24 on Monday.
