Genting S'pore rakes in $159.2m Q4 profit
Genting Singapore hit the jackpot in the fourth quarter, raking in net profit of $159.2 million.
This is a sharp reversal from a net loss of $7.8 million in the same period last year, as the Resorts World Sentosa operator whittles down bad debt provisions while notching up better gaming revenue from its premium player business.
Bad debt provisions shrank 14 per cent to $38.9 million as it continued to tighten its credit policy for the VIP gaming business and "remodel" its commission structure.
The bottom line was also helped by a net foreign exchange gain of $65.5 million, compared with a loss of $22.6 million a year earlier. Revenue for the three months to Dec 31 edged up 2 per cent to $557.7 million.
The group's Ebitda - a measure of profit before tax, interest and other items - jumped 29 per cent to $233.7 million.
For the full year, net profit more than trebled to $266.3 million even as revenue slid 7 per cent. Record high visitor arrivals and tourism receipts to Singapore last year helped.
Arrivals grew 7.7 per cent to 16.4 million while receipts expanded 13.9 per cent to $24.8 billion, bankrolled by higher-spending visitors.
But rival Marina Bay Sands (MBS) keeps winning the market share battle. MBS last month posted a net profit of US$366 million for the fourth quarter, up 8 per cent from the US$339 million (S$481 million) a year earlier. Revenue rose 2.8 per cent to US$723 million, helped by a 5.6 per cent increase in gaming turnover to US$563 million.
VIP gaming revenue, which accounted for about 42 per cent of its total gaming turnover, fell 18.4 per cent to US$8.26 billion in the three months to Dec 31.
Genting reported earnings a per share of 1.33 cents compared with loss per share of 0.06 cent in 2015.
Its shares closed 1 per cent higher at 98 cents ahead of the release of its results yesterday. - THE STRAITS TIMES