Genting Singapore reports narrowed loss in 16Q2

Casino operator Genting Singapore’s net loss narrowed in the second quarter of 2016, as expenses and finance costs fell.

According to its filing to the Singapore Stock Exchange, for the three months ended June 30, 2016, net loss was S$10 million (US$7.8 million) compared to a loss of S$16.9 million in the same period in 2015.

Revenue fell 17 percent to S$480.9 million, said the operator.

Last week, Union Gaming analysts had lowered their 16Q2 estimates for Genting Singapore after reviewing 16Q2 gaming trends via Las Vegas Sands’ Marina Bay Sands results.

“The Asian gaming market continues to face challenges,” said the company. “Our premium market has been significantly impacted by a low win percentage.”

Adjusted EBITDA slipped 61 percent to S$116 million, even lower than analyst estimates of S$199 million.

Gaming revenue in the second quarter was also down 23 percent year-on-year, from S$428.3 million in 2015, largely as a result of the weaker VIP gaming segment.

“The regional economic environment continues to be uncertain, and we continue to exercise caution with our VIP gaming business. Our regional premium mass and mass market remains steady,” Genting Singapore said.

The results pushed Genting Singapore to post a small profit of S$305,000 for the first half of 2016, down 99 percent from the same half in 2015.