Genting Singapore has reported a net profit in the fourth quarter at S$22 million (US$15.7 million), down 82 percent from S$118.9 million in the same period in 2014, according to a recent financial statement.
Revenue for the quarter came in at S$547.4 million, down 14 percent from S$637.9 million in 2014. Gaming revenue was down 19 percent to S$374.0 million, from S$ 461.3 million in 2014.
For the year ended Dec. 31, 2015, the group reported net profit at S$193.1 million, down 70 percent from S$635.2 million. Revenue for the year was reported at S$2.4 billion, down 16 percent from S$2.9 billion in 2014 and an adjusted EBITDA of S$915 million.
Genting Singapore says their focus remains on the regional premium mass and mass gaming business.
In the non-gaming business, despite a slowdown in tourism arrivals to Singapore, Resorts World Sentosa delivered good performance, with nearly 7 million visitors welcomed in the year.
For VIPs, RWS says they are continuously positioning the brand to attract the “High Net Worth Market” and has made continuous efforts to “raise the brand positioning of RWS to attract the “High Net Worth” market”. “Through these alliances, we will achieve a more compelling brand identification, and hence achieve better tactical reach to all our selected markets.” the company said in a statement.
The directors have proposed a payment of a tax-exempt final dividend of 1.5 cents per ordinary share.
According to Union Gaming analysts, RWS’ VIP segment will at best be stable going forward. “the property is not only dealing with demand weakness on several fronts (e.g. China economy, China anti-corruption, Malaysian Ringgit weakness, Indonesian Rupiah weakness), but with management’s more cautious strategy. At best we believe this segment will be stable going forward from a volume perspective relative to 4Q15.”
“We are therefore maintaining our Hold rating and are lowering our PT to SGD0.70 (from 0.75) on slightly lower forward estimates,” the brokerage adds.