Genting S'pore Q3 profit surges by 61 per cent

PHOTO: Genting S'pore Q3 profit surges by 61 per cent

Genting Singapore's net profit surged over the last quarter as a result of a rise in visitors at its hotels, attractions and casinos.

The casino operator posted a third-quarter net profit of $222.7 million, a 61 per cent jump from the same period last year.

Both its gaming and non-gaming businesses improved. The former netted $607 million in revenue, an increase of 15 per cent year on year. This was due to an increase in the number of casino visitors, particularly VIP customers with more spending power.

OCBC Investment Research analyst Carey Wong said Genting's strategy of attracting high-rollers from nearby countries such as China is bearing fruit.

Revenue from Genting's non- gaming business segment was $170 million, 27 per cent higher than in the same period last year.

Hotels run by its subsidiary, Resorts World Sentosa (RWS), boasted an average occupancy rate of 94 per cent, the highest to date.

RWS attractions also continued to pull in the crowds, drawing a daily average of more than 18,000 visitors. Universal Studios Singapore, Adventure Cove Waterpark and Marine Life Park - which opened in November last year and had its three millionth visitor on Monday - are gaining traction as popular venues for meetings, conventions and exhibitions, said an RWS spokesman.

RWS plans to boost its capacity by adding more rooms to its Festive Hotel on Sentosa.

Construction of a new hotel in Jurong Lake District is also progressing on schedule, said the spokesman, with superstructure work to be completed before the year end.

But "the current global economic environment is still relatively unpredictable", she added, as Singapore is a more expensive destination for regional customers.

Mr Wong noted that in terms of attractions, Genting is reaching a "steady state".

"Most of the attractions are in place," he said. "A lot have a fixed cost, so as long as more people visit them, they'll make more money. It's a matter of drawing visitors and keeping attractions fresh."

charyong@sph.com.sg


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