SINGAPORE (May 9): Genting Singapore (GENS) reported 1Q19 earnings fell 5% to $205.5 million from $217.2 million in 1Q18.
This came on the back of a 5% drop in revenue to $640.4 million from $675.1 million last year, mainly due the group’s gaming business in Resorts World Sentosa experiencing an 8% y-o-y drop in revenue to $430.2 million.
This was partially offset by higher revenue from the group’s non-gaming business in the Singapore IR, which saw 1% y-o-y increase to $209.3 million, marking its eighth consecutive quarter of y-o-y revenue growth with higher spend per visitor; as well as a 56% increase from other revenue to $0.9 million.
However, cost of sales increased by 6% to $351.2 million, causing 1Q19 gross profit to come in 16% lower at $289.2 million from a year ago.
Other operating income saw a fourfold increase to $4.9 million, compared to $1.2 million in the previous year.
Interest income also increased 39% y-o-y to $21.8 million.
Administrative expenses increased 1% to $43.1 million, while selling and distribution expenses dropped 1% to $12.3 million and other operating expenses fell 83% to $3.9 million.
During the quarter, hotel occupancy remained high at 93%.
Notwithstanding challenges from both the local and regional economies, the group says it will continue its marketing efforts especially towards the regional premium mass segment.
Shares in GENS closed at 95 cents on Thursday.
