Genting Singapore reports significant profit decline in third quarter

Genting Singapore reports significant profit decline in third quarter

Genting Singapore Ltd. reported a significant drop in net profit for the third quarter of this year, falling by 24% from the same period of time in 2018. This, according to the company, was due to lower revenue accumulated from its gambling business.

Genting Singapore reports significant profit decline in third quarterThis was not the only bad news reported by Genting. Revenue fell by 7% to $596.1 million while the adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was at 278 million, down 13% from the same period of time last year. Gaming revenue fell by 11% to $360.7 million, while the non-gaming revenue saw a modest gain of 1% to a total of $234 million.

All of this information was released during a recent filing with the Singapore stock exchange. Genting explained that they were still continuing to attract affluent customers throughout the region and were continuing to grow in the Asian market.

This appears to be supported by the company’s confirmation that they intend to bid on a license to develop an integrated resort in both Yokohama and Osaka, Japan. Of its commitments, Genting asserted their assurance that they will be “delivering compelling proposals” to acquire the licenses.

In a statement, the company said, “With offices in Tokyo and Osaka anchored by local teams, the Group has been working diligently and making extensive preparation works for the formal bidding process known as Request for Proposal (RFP) to be issued by cities.”

They are currently one of three companies in the race to acquire the Osaka license. Of their proposal, Genting explained, “We have fully responded to Osaka’s Request for Concept (RFC) and are now preparing for Yokohama’s RFC. The requirements and expectations of Japanese authorities are complex and of the highest standards, in keeping with the objective of creating a true integrated resort (IR) that will enable Japan to achieve a quantum leap for its tourism economy.”

Despite the stringent conditions to acquire a license, officials at Genting do not appear to be concerned. “Having operated a highly successful true IR in Singapore that encompasses the full spectrum of tourism offerings, we are committed to delivering compelling proposals.”

This is not the only project that Genting Singapore is currently involved in. Genting is investing $4.5 billion to improve the facilities at its Resorts World Sentosa integrated resort, which will greatly increase the gaming capacity, providing additional revenue sources. The construction in this project is expected to begin in the second half of 2020, according to a statement released by the company.