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INVESTOR CENTRAL: Genting Singapore PLC - It is losing half a billion dollars on investments - which ones?

FRIDAY, 27 NOVEMBER 2015 - Genting Singapore PLC says its Integrated Resort project in Jeju, Korea is on track for soft launch at the end of 2017.

The casino operator is "sanguine" about the prospects that a gaming bill will pass the Japanese parliament, the Diet, which would allow it to open a casino there.

Apparently, it has to wait for at least a couple of years before other geographies begin contributing to its gaming revenue.

Until such time, the management expects weaker earnings from high rollers in Singapore.

This story is about the company's ballooning impaired and doubtful trade receivables.

This question comes up every time we write about Genting Singapore's earnings.

It also has questions about the available-for-sale financial assets that are responsible for almost half a billion Singapore dollars' worth of realised and unrealised losses so far this year.

Separately, this story highlights an interesting fact about the disposal of shares by its independent director and the buyback of shares by the company.

Finally, we try to understand the basis on which the directors, including the independent ones, are granted shares under performance share scheme.

Now for the full story in detail, starting with their Q3 earnings report:

Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies to which global investors need answers.

Question
Question

1. What led to a decline in hotel occupancy?

Genting Singapore's hotel business recorded an overall occupancy of 88% in Q3.

That's sharply lower than occupancy of 93% in Q2.

Curiously, its hotel occupancy fell despite a 10% QoQ rise in its overall revenue and an about 17% increase in average daily visitors.

Therefore that makes us wonder what led to such a sharp decline in its hotels' occupancy in Q3.

Question
Question

2. Why has it stopped publishing the average daily room rent?

Genting Singapore recorded an average daily room rent of S$422 in Q4 last year, which dropped to S$381 in Q1 this year.

Curiously, it hasn't shared the data in the last two quarterly earnings announcements.

Are they so bad that it would rather not publish them?

(Read the full story to get all 11 questions)

We have invited the company (ir@gentingsingapore.com) to an on-camera interview, and/or to reply to our questions in writing.

At the time of publication we have not received a reply (which is why you are seeing this message).

We will update this report if we do.


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