Genting Singapore Sees Strong Revenue Growth in 2023
In the first half of 2023, casino operator Genting Singapore's net profit skyrocketed to $205.6 million, more than tripling due to a vigorous VIP win rate. This substantial profit increase was also supported by a rebound in the non-gaming sector at its Resorts World Sentosa in Singapore.
Increases across All Segments
The company's 1H23 financial results showed a profit boost from $62.7 million, driven by a 57% increase in gaming revenue to $555 million and an 82% rise in non-gaming revenue to $248 million. Consolidated revenue for the period escalated by 63%, reaching $803 million.Related: Singapore Is Stealing Macau's Gambling VIPs
The Adjusted EBITDA grew by 68% compared to 1H22, resulting in $337 million. Genting Singapore revealed that its gross gaming revenue (GGR) rose by 3% quarter-on-quarter, reaching $407 million, a figure that is quickly nearing the levels observed in 2019. Meanwhile, the company's non-gaming revenue saw a more significant increase of 31% quarter-on-quarter, totaling $140 million.
These improvements in both gaming and non-gaming sectors were attributed to higher attendance at attractions and more spending per customer. The company explained that these positive changes were the result of focused marketing and promotional strategies designed to attract and engage customers more effectively.
Expansion Plan Underway
Genting Singapore detailed the advancement of renovation plans at RWS, highlighting the initiation of an upgrade to the Forum in May 2023. The company stated that this renovation will establish a 20,000-square-meter central lifestyle hub featuring an array of high-end restaurants, unique specialty stores, entertainment venues, and standout concept shops, all set within a biophilic (nature-infused) environment.
JP Morgan had raised doubts about Resorts World Sentosa losing its market share in the mass-market gambling sector to Marina Bay Sands. So, the company, with the plans mentioned above, is attempting to regain its share. However, the banking group needs help to be optimistic about these efforts at the current stage.
Furthermore, the Construction of Minion Land at Universal Studios Singapore and the Singapore Oceanarium, part of the RWS 2.0 project, is on track. The transformation of RWS will continue with the new Waterfront building, Equarius Hotel extension, and a new Health and Wellness Centre, with construction planned for 2024. Nevertheless, this is subject to receiving the necessary governmental approvals.