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Genting Singapore sees profit jump in 17Q2

Genting Singapore saw its net profit surge to S$172.7 million (US$127.1 million) in the second quarter ended June 30, 2017, attributed to higher revenue and lower cost of sales.

Revenue jumped 24 percent in 17Q2 to S$596.1 million, up from S$480.9 million in 16Q2.

Genting Singapore said the increase in revenue was attributed to higher rolling win percentage in the premium player business.

The group generated adjusted EBITDA of S$292.7 million, representing a 152 percent increase over the same quarter last year.

“All major businesses registered stronger EBITDA at the back of improved operating margin as we continue to drive strategy to focus on better margin business and maintain lower impairment of receivables,” said the company in a filing to the Singapore Stock Exchange.

Morgan Stanley said the results beat its EBITDA forecasts by 10 percent.

The EBITDA beat was mainly driven by lower VIP commissions and mass market share gain, it said in a note.

“We see VIP commission decline as sustainable, since both MBS and GENS benefit from lower competition. Mass market share grew to 40 percent from 36 percent in 1Q17, helped by recent initiatives in premium mass category.”

For the first half of 2017, revenue went up 9 percent to S$1.2 billion. Adjusted EBITDA grew 85 percent to S$576 million contributed also by cost efficiency arising from the initiatives implemented since 2016.

The group achieved net profit of S$382.9 million arising from the improved performance of the IR in Singapore, aided by the gain on disposal of its interest in an integrated resort in Korea, said the company.

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