Genting Singapore profit up 97% in first quarter
TOMOMI KIKUCHI, Nikkei Staff Writer
SINGAPORE -- Resort operator Genting Singapore, the Singapore-listed subsidiary of Malaysia's Genting, recorded a net profit of 228.5 million Singapore dollars (about $183 million) in the first quarter of 2014, up 97% from the corresponding quarter last year. Total revenue also grew 24% to S$828.8 million, generated largely by a strong performance in gaming sector at Resorts World Sentosa -- a hotel, casino and a theme park.
The Singaporean subsidiary's gaming business saw year-on-year growth of 29% to S$671.9 million, backed by "higher rolling volume and win percentage in the premium player business." The revenue from the nongaming sector was S$156.4 million, up 6% from last year. The growth was attributed to the hotel's 92% occupancy rate and room charges that averaged S$409.
Genting is keen on expanding business overseas, especially in Japan, where a bill on introducing casinos has been tabled in parliament. In the financial statement, the Singaporean subsidiary mentioned that the group has set up a project team to "understand, monitor, and prepare for the developments in the near future" in the hopes of partnering with "Japanese institutions that will add to the strength of our proposal for an integrated resort in Japan."
Genting recently announced the completion of transaction to invest in the development of an integrated resort in Jeju, South Korea. In the first quarter of 2014, the group's equity injection and shareholder loan to its associate, Landing Jeju Development, in relation to the development of a South Korean resort amounted to S$195 million.
Genting Singapore noted in the statement it will be putting forth new initiatives to attract consumers, such as new attractions in Universal Studios Singapore in Sentosa. The Singaporean subsidiary is also developing another hotel in Jurong, western Singapore, scheduled to open in mid-2015.