Genting Singapore 15Q1 profit plunged 64 percent as VIP gaming dried up and the mass market remained relatively flat, with the company predicting no end in sight to the problems in the high roller segment.
Net profit plunged to S$91.7 million from $257.5 million a year earlier. Earnings per share slumped 72 percent to $0.52 cents. Revenue declined 23 percent to S$639.2 million.
Adjusted EBITDA was $228.1 million, down 43 percent year-on-year.
The company said VIP revenue had continued to be weak in the quarter and the industry is adjusting to “the new norm.” It said adjustments made to remodel its premium business had begun to show benefits in improved margins.
During the first quarter of 2015, the attractions business enjoyed a daily average visitation of about 16,000 and the hotel business maintained a high occupancy rate of 93 percent with the daily average room rate at S$381.
“Our premium gaming business continues to come under stress due to regional environmental factors. We do not expect any respite in the medium term, and are restructuring our operational and marketing organisation to adjust to this change,” the company said in a stock exchange filing.
“Additionally, in such circumstance, we have adopted a cautious approach in granting credit in this market segment and will be prudent in providing for our receivables. The year ahead will be challenging.”
The company said it expects its non-gaming business to be strong in 2015, helped by Singapore’s Golden Jubilee celebrations and the opening of the group’s new 557-room hotel in the Jurong district.
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