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Thread: Genting hit by fall in visitor numbers

  1. #1

    Default Genting hit by fall in visitor numbers

    http://www.straitstimes.com/archive/...mbers-20140815

    Genting hit by fall in visitor numbers

    Global uncertainty, political tensions also send Q2 profit down 27%

    Published on Aug 15, 2014 1:09 AM

    By Grace Leong


    FEWER visitors from core markets like China coupled with increased geopolitical tensions and global economic uncertainty took their toll on Genting Singapore's earnings in the second quarter.

    Net profit slumped 27 per cent from a year ago to $102.3 million for the three months to June 30, while revenues gained 6 per cent to $751 million.

    A larger-than-expected bad debt provision of $81.5 million, which related to debts from nine to 12 months ago, also hit Genting's earnings.

    Genting Singapore president and chief operating officer Tan Hee Teck told analysts yesterday: "For every dollar of credit we give out, there will be a certain percentage we have to provide for as bad debt.

    "Having said that, our overall impairment numbers are not out of sync. When the financial situation in a country becomes not so good, there will be higher losses. That's something we cannot avoid. As to whether the impairment numbers are good or bad, it depends on the economic situation of the core market we operate in.

    The challenging business environment over the next two to three quarters is seen further weakening the VIP gaming market. "As to how much the VIP market will soften, we don't know," Mr Tan said.

    Earnings per share for the quarter was 0.84 cents, down from 1.15 cents a year earlier, while net asset value was 62.2 cents, from 60 cents as at Dec 31.

    The group did not declare a dividend for the quarter.

    Gaming revenue at Genting gained 9 per cent in the second quarter to $596.9 million, helped by higher rolling volume and higher win percentages in the premium player business.

    Genting's rival, Marina Bay Sands, raked in net profit of US$417.8 million (S$521.7 million) for the second quarter, up 17.6 per cent from a year earlier, while revenue was US$804.7 million.

    Genting's non-gaming revenues fell 3 per cent to $153.6 million due to declining visitor numbers at the Marine Life Park and Aquarium. Mr Tan noted: "We have to rejuvenate our attractions' offerings, especially at the aquarium, where we are introducing some new exotic animals. So by the fourth quarter, the numbers should come back up again."

    The resort receives about 17,000 visitors a day, with around 10,000 going to the Universal Studios Singapore and the rest to the Marine Life Park. The average daily spending at the studios is $80 and $32 at the marine park.

    Mr Tan said he is optimistic that Japan will pass legislation by the end of year allowing casinos to be set up in the country, possibly before the 2020 Olympics in Tokyo.

    "The group has sufficient financial resources and is well-placed to bid for this opportunity," he said.

    Genting Singapore shares closed up 0.5 cents at $1.275.

    The results were released after the market closed.

    gleong@sph.com.sg


  2. #2

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    Hope there were improvements on December 2017 to Jan 2018?

    I did hear a positive feedback from my friend!


  3. #3

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    Quote Originally Posted by teoronn View Post
    Hope there were improvements on December 2017 to Jan 2018?

    I did hear a positive feedback from my friend!
    Friday up 12 cents to $1.28... hope more to come


  4. #4
    OCR properties going to crash! teddybear's Avatar
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    Genting up 10.34% to $1.28 in 1 trading day?
    Wow! Looks like we should see fire with the smoke coming. Something big is brewing and big boys already moving in?

    Quote Originally Posted by henryhk View Post
    Friday up 12 cents to $1.28... hope more to come


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