Genting Singapore will delay development of its SG$4.5 billion Resorts World Sentosa expansion project until 2022 due to various impacts as a result of COVID-19.
Management provided the update during Genting Singapore’s FY20 earnings call last week, although details were largely absent from analyst updates until outlined by Union Gaming’s John DeCree in a Wednesday note.
According to DeCree, the company said the decision to delay development of RWS 2.0 was prompted by disruptions across the supply chain and labor force, as well as major design changes to cater to health and safety requirements as well as changing market dynamics in the VIP segment.
“That said, Genting Singapore reaffirmed its commitment to the scope of RWS 2.0 and the capex budget of SG$4.5 billion,” DeCree wrote.
First announced in April 2019, the RWS 2.0 expansion aims to increase the property’s gross floor area by 50%, adding 164,000 square meters of leisure and entertainment space.
Among the planned additions are expansion of Universal Studios Singapore, including new themed areas “Minion Park” and “Super Nintendo World”, further development of S.E.A. Aquarium which will be re-branded “Singapore Oceanarium”, the addition of another 1,100 hotel rooms as part of a new “waterfront lifestyle complex”, an enhanced waterfront promenade with restaurants and retail, expanded MICE facilities and development of a driverless transport system around the property.
Genting Singapore reported a 90% decline in profit to SG$69.2 million (US$52.0 million) in FY20, with revenue down 57% to SG$1.06 billion (US$797.7 million) and Adjusted EBITDA down 64% to SG$427.0 million (US$321.3 million).