CASINO

Genting Singapore See Shares Sag As Q1 Earnings Fall

TAGs: genting group, las vegas sands, Lee Davy, Resorts World Sentosa

Genting Singapore See Shares Sag As Q1 Earnings FallGambling is a game based on luck hence the reason the house always wins, but in the first quarter of 2013, VIP gamblers plying their trade at Genting Singapore Resorts World Sentosa, were fortunate enough to have more luck than most. The resort’s financial statement showed that Genting Singapore’s Q1 EBITDA fell to S$249.7 million compared to S$381.4 million this time last year: ‘This quarter was largely affected by a much weaker win percentage in the premium players business despite a significant increase in the premium players rolling volume.’ Or translated into a simpleton’s language, ‘Those whales just got damn lucky!’

It was surprising news even to the analysts at Reuters where a poll of five of the very best had predicted an average profit of S$359 million. In addition to the loss of gaming revenue, the group had also spent a total of S$255.2 million on the purchases of property, plant and equipment including the land in the Jurong Gateway where Genting are building a four star hotel development.

Genting Singapore’s non-gaming revenue faired a lot better with a 17% increase in growth compared to this time last year. The recently unveiled Marine Life Park has been a huge success. The Park, which holds two Guinness Book of World Records for being the largest aquarium in the world, and also featuring the worlds largest viewing panel, has been attracting 7,400 visitors per day, whilst Universal Studios Singapore recorded an average daily visitation figure of 8,400 per day. Despite the Singapore tourism board warning that visitation numbers are due to decline, the resort still saw a 92% room occupancy rate, and with an average room rate of S$404 you can see why it’s one of the most profitable casinos in the world.

In stark contrast to the fortunes of Genting, Las Vegas Sands reported record revenue of $3.3b in Q1, 2013, a 19.5% improvement on last year’s results. Despite Singapore’s Marina Bay Sands gaming revenue falling 8.7% to $640.2m, it did post a record $18.2b in rolling chip volume, an impressive increase of 42.2%.

So if you are a high roller looking for some action in Singapore, then it seems you should try your luck at the Genting Singapore Resorts World. Sentosa.

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