Genting Singapore, operator of Resorts World Sentosa (RWS), has reported a 90% decline in profit to SG$69.2 million (US$52.0 million) for FY20, heavily impacted by the three-month closure in operations between April and June and ongoing limitations to global travel.
Releasing its financial results late Tuesday, Genting Singapore revealed a 64% fall in Adjusted EBITDA to SG$427.0 million (US$321.3 million) on a 57% decline in revenue to SG$1.06 billion (US$797.7 million), of which gaming contributed SG$700.8 million (US$527.3 million) and non-gaming SG$299.4 million (US$225.3 million).
There was, however, notable improvement in the second half of the year with total revenue of SG$615.5 million (US$463.1 million) and Adjusted EBITDA of SG$360.4 million (US$271.2 million) in 2H20 versus SG$448.2 million (US$337.2 million) and SG$66.7 million (US$50.2 million) respectively in 1H. Net profit for the second half of the year was down only 41%, it added, compared with the 90% full year decline.
“As Singapore moved into Phase 3 of reopening of the economy at the end of 2020, RWS began operating the resort facilities with further relaxation to the Phase 2’s limited operating capacity,” the company explained.
“Through these difficult times, we have re-imagined and innovated our resort offerings, and created fun and exciting activities across the resort. For example, to boost local visitorship, we introduced specially curated staycation packages alongside unique dining experiences … we also rolled out a series of exciting events coinciding with the year-end season.”
Genting Singapore said it remains cautious about the year ahead given the likelihood that international travel will remain limited throughout, however it also reiterated its commitment to key ongoing development projects.
They include the SG$4.5 million (US$3.3 billion) expansion of RWS and its pursuit of an IR bid in Yokohama Japan. Having shown some hesitation at the Japan opportunity in its previous results announcement, Genting Singapore appears much more committal this time around, stating, “We are encouraged by the steps taken by the City of Yokohama to launch a formal bidding process for the development of an Integrated Resort (IR) which will transform the City to become a gateway to Japan for inbound visitors and contribute towards Japan’s tourism growth strategy.
“We remain committed to our vision of creating a world-class IR destination that is uniquely positioned and sustainable, and anchored on strong local partnerships. We will continue to engage the relevant stakeholders in this process.”