Local gamblers bring Genting Singapore back to black with $ 54.5 million profit in Q3

Casino operator Genting Singapore has seen a strong sequential rally between Q2 and Q3 ending September 30 as lockdown measures eased somewhat. In a November 14 quarterly business update, the company, which operates Resorts World Sentosa, reported earnings of nearly $ 54.5 million for Q3, compared to losses of $ 163.3 million in the prior quarter ended June 30. Revenues for 3Q were $ 300.1 million, compared to just $ 41.3 million in 2Q. Despite the quarter-on-quarter improvement, Genting Singapore was still recovering from the pandemic. On a year-over-year basis, earnings were down 66% and revenue was cut in half. Even with incoming tourism practically absent, and even with the economic crisis, many local players were still trying their luck at the casino. During the third quarter, Genting Singapore generated $ 212.9 million in gaming revenue, 41% less than the previous year. In contrast, in 2Q, when operations largely stopped, there was still about $ 6.5 million in gaming revenue. Non-gaming related revenue, on the other hand, improved from $ 16.3 million in 2Q to $ 59.9 million in 3Q. In its business update, Genting Singapore calls Covid-19 an “unprecedented crisis” for the travel and tourism industry. It is adapting by offering stay packages to the locals and also themed dining experiences. Genting Singapore is reiterating its commitment to develop the $ 4.5 billion mega expansion for RWS, which was announced last September. Additionally, Genting Singapore is “excitedly exploring” Yokohama’s integrated resort opportunity in Japan. “We will evaluate the conditions of the Request for Proposals and the investment environment when the formal bidding process begins and we will respond with a proposal if these conditions meet the investment criteria of the group,” the company states. Genting Singapore last traded on Nov. 13 at 74 cents, unchanged on the day, but down 25.7% year-to-date.