SINGAPORE (Feb 23): Genting Singapore (GENS) saw its 4Q17 earnings ended Dec fall 29% to $134.0 million from $188.9 million a year ago.
This was mainly attributable to a net exchange loss of $1.2 million relating to investments in 4Q17, compared to a net exchange gain of $68.7 million a year ago.
As a result, other operating income fell 84% to $14.4 million during the quarter, from $89.2 million a year ago.
Despite the lower earnings in 4Q17, GENS recorded a 78% increase in full-year earnings to $685.5 million in FY17, from $384.5 million a year ago.
4Q17 revenue grew 4% to $580.1 million, underpinned by the stronger underlying performance of the leisure and hospitality segment as a result of higher business volume.
The daily average visitation for the group’s major attraction offerings – Universal Studios Singapore, the S.E.A. Aquarium, and Adventure Cove Waterpark – enjoyed growth in a range from 6% to 9%.
Its hotel business maintained a high occupancy rate of 91%.
Adjusted EBITDA grew 9% to $255.1 million in 4Q17, from $233.7 million a year ago.
As at end December, cash and cash equivalents stood at $3.83 billion.
GENS is proposing a final dividend of 2.0 cents per share for FY17, compared to 1.5 cents per share a year ago.
In a filing to SGX on Friday, GENS says the recalibration of its credit policy and commission structure for the VIP gaming business in 2017 is paying off and is proving to be a sustainable growth strategy.
“We are now able to achieve lower impairment on gaming receivables and improve operating margins,” it adds. “We will continue to curate and re-invest in new tourist facilities, and re-fresh existing products to remain attractive to our customers.”
In addition, GENS says it is reviewing its processes and guest interaction touch points to identify areas where it could innovate to achieve a better customer journey in all its business segments.
Shares of Genting Singapore closed 1 cent up at $1.30 on Friday.
