Resorts World Sentosa posts 32.2 percent earnings drop

Genting Singapore PLC (G13.SG) announced a 32.2 percent drop in the company fourth quarter earnings yesterday, attributed to a high player win ratio in its VIP sector. The company posted EBITDA of US$197.6 million for the third quarter of 2013, down from $291.7 million. In a note to the stock exchange Genting Singapore said that “notwithstanding the higher volume registered in the premium gaming business, overall gaming revenue registered a drop, impacted by lower win percentages.” Adjusted Ebitda dropped 28 percent from the previous quarter. Net profit in Y13Q4 was $134.2 million while group revenue reached $547.3 million, a 12.5 percent slump. GGR also dropped, by 19.2 percent, to $401.7 million. A S$1.0 dividend was proposed. The company “will increase our marketing spending to drive foreign visitation growth, and this will potentially dilute our yield,” it said, adding that “the labor-intensive nature of our business only allows for limited gains from any productivity measures that we undertake.”