Casino operator Genting Singapore posted a 17-fold increase in first quarter net profit, partly due to the sale of its stake of a resort in Jeju, South Korea.
Net profit was S$210.2 million for the first three months of 2017, up from S$40.2 million in the prior-year period. Revenue in the first quarter was down 4 percent to S$586.6 million, with gaming and non-gaming revenue down year-on-year.
Genting Singapore said it completed the sale of its 50 percent stake in its Jeju integrated resort on Jan 3, which brought in a gain of S$96.3 million.
The disposal of Genting’s stake in Callisto Business Limited, which owns a 50 percent stake in Landing Jeju Development Co., Ltd., (Jv Co) was first announced in November 2016.
Adjusted EBITDA in the quarter was up 47 percent year-on-year due to “improvement in operating margins arising from cost-efficiency initiatives and substantially lower impairment in receivables.”
With respect to Japan, the company said it is “continuing with our growth and diversification plan and are allocating resources in tandem with the progress of the Japan IR (integrated resort) Execution Bill, which will pave the way for the formal bidding process of the Japan gaming licences.”