Genting Singapore's profit plunged 24.5% YoY to $158.9m in Q3
Weaker volumes in the gaming segment caused the drop.
Genting Singapore’s net profit nosedived 24.5% YoY to $158.9m in Q3 2019 amidst troubles in the gaming segment due to higher levy, raising impairments and competition from Marina Bay Sands and other players.
Revenue also slipped 6.7% YoY to $596.1m in Q3 2019 from $639.1m in the same quarter last year. Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) also fell 11.4% YoY to $281.7m.
Gaming revenues plunged 11% YoY to $360.4m due to weaker volumes in mass gaming and lower VIP win rate. However, non-gaming revenues held up, inching 0.6% YoY to $234.6m due to higher tourist arrivals.
RHB Research analyst Juliana Cai commented, “During the quarter, mass gaming volumes continue to be negatively impacted by the increase in casino levy for Singaporeans and permanent residents. Although Genting Singapore saw incremental growth in foreign patrons, this was unable to offset the decline. We estimate mass gaming volume to fall c.15% YoY in 3Q2019.”