Genting Singapore swings to profit in 16Q4

Genting Singapore swung to a net profit of S$159.98 million (US$113.2 million) for the fourth quarter ended Dec. 31, 2016, compared to a net loss of S$7.8 million in the prior year period.

Revenue was S$557.7 million, up two percent year-on-year compared to 15Q4.

Adjusted EBITDA rose 29 percent to S$233.7 million, slightly beating analyst estimates.

Genting said the results were boosted by higher gaming revenue as a result of higher rolling win percentage in the premium player business, and a revised strategy to focus on better margin business.

Brokerage Union Gaming says it estimates VIP volume declined 23 percent year-on-year to S$6.8 billion in the fourth quarter of 2016, while VIP GGR grew 3 percent year-on-year due to a low hold in 15Q4.

Mass and slots GGR declined 11 percent year-on-year to S$366 million, while non gaming revenue declined 8 percent year-on-year to S$159 million, said the brokerage.

“Bad debt expense continues to be managed down (in line with our expectation). Collections on receivables continue to improve, with receivables falling to $S198 million, and bad debt expense dropping to S$39 million during the quarter (in line with our estimate),” said Bernstein in a note on Thursday.

For the full year, net profit rose 254.2 percent from S$75.19 million 2015 to S$266.35 million in 2016. Revenue fell 7 per cent year on year to S$2.23 billion.

The company also spoke optimistically of Japan during its earnings call, with the company remaining confident of being a strong bidder in any Japan IR opportunity.