Genting Singapore posts 24% drop in 3Q earnings to $159 mil on lower gaming revenue

SINGAPORE (Nov 7): Genting Singapore (GENS) reported earnings of $158.9 million for 3Q19 ended September, some 24% lower than $210.4 million a year ago.

Revenue for the quarter fell 7% to $596.1 million from $639.1 million in 3Q18, which the group attributed mainly to “a confluence of headwinds”.

The revenue decline was spearheaded by an 11% y-o-y drop in revenue contribution from the gaming segment to $360.8 million. This was also 18% q-o-q lower compared to gaming revenue of $441.1 million in 2Q19.

Revenue from the non-gaming segment, however, inched up by a marginal 1% to $234.6 million.

Cost of sales came in at $359.4 million, up 8% from $333.8 million back in the same quarter the previous year.

Consequently, gross profit slumped 22% to $236.7 million in 3Q19, from $305.3 million in 3Q18.

Notably, GEN’s other operating income more than doubled to $7.4 million from $3.1 million the previous year.

Earnings per share (EPS) slipped 25% to 1.32 cents, from 1.75 cents in 3Q18.

As at end-September, cash and cash equivalents stood at $3.68 billion.

In its outlook statement, GENS says that the announced mega expansion plans of RWS 2.0 is well in progress, and will commence with the construction works in the second half of 2020. GENS also notes that it continues to be positive in attracting the affluent market from the region and leverage on the growing Asian economies.

Shares in Genting Singapore closed half a cent higher at 96 cents on Thursday.