Genting Singapore revenue steady but profit more than doubles in 2021

Gaming made up S$802.6m of the total, up 14.9% from 2020.

However, non-gaming revenue declined by 14.1% to S$258.2m. This includes S$110.3m from hotel rooms, S$74.1m from attractions, S$14.0m from rental income and S$61.3m from other sources.A further S$5.0m came from hospitality and support services.

While almost all of the operator’s revenue was from Singapore itself, S$34,000 came from elsewhere in the Asia-Pacific region, where genting conducts sales and marketing for Resorts World.

The operator then paid S$740.4m in costs of sales, down 11.0% from 2020.

This meant that Genting’s gross profit was up 40.9% to S$326.9m.

The business then received $29.9m in other operating income, up 145.1%, but interest income dropped by 72.1% to S$45.5m.

Genting Singapore’s administrative expenses also declined, by 9.4% to S$118.7m, while its selling and administrative expenses ticked downward to S$16.4m and other operating costs dropped by almost 60% to $11.3m.

This left an operating profit of S$227.8m, which was up by 96.7% from the year prior.

After finance costs of S$3.4m, down 17.0%, and a S$1.9m profit from joint ventures, up 47.0%, Genting Singapore’s profit before tax was S$226.3m, just over double the figure from 2020.

The business paid $43.0m in tax, meaning its final profit amounted to S$183.3m, which was 164.9% more than the year before.

The business said it anticipates more growth in 2022 as it continues to bounce back from the Covid-19 pandemic.

“While the Covid-19 pandemic has severely impacted the business of the Group, there are signs that allow us a sense of optimism for the travel and tourism industry,” It said. “We are hopeful that with further relaxation of Singapore’s Covid-19 related regulations and gradual resumption of mutual vaccinated travel lanes (VTLs), more travellers will return to Singapore in 2022.

“However, such tourism flow is expected to be mostly small groups of FIT (free independent traveller) leisure and business travellers.”

The operator added that, in anticipation of the increase in travellers, it is going ahead with a S$400m expansion and refurbishment plan.

After the end of the period, Genting received a licence renewal for Resorts World Sentosa, lasting until 2025.

However, the Singapore gaming market may also face a number of major changes.

In January, Singapore's government passed the Gambling Duties Act 2022, which raised the base tax rate from ordinary casino players revenue from 15% to 18%.

This would apply up to a revenue threshold of SGD3.1bn (£1.7bn/€2.0bn/$2.3bn), with any revenue exceeding that being taxed at 22%.

Meanwhile, further reform bills passed their first readings in the country's parliament earlier this week (14 February).

Under the Gambling Regulatory Authority of Singapore Act 2022, Singapore’s Casino Regulatory Authority would be renamed the Gambling Regulatory Authority of Singapore.

The Authority would have the right to distribute, renew and revoke licences. It would also have the right to issue fines in the instance of criminal conduct that violates the Gambling Control Act 2022.

The Gambling Control Act would amend a number of sections in Singapore’s 2006 Casino Control Act, including adding definitions of what constitutes gambling.

Partaking in or offering illegal gambling services, including proxy betting, would be punishable with a fine of SGD$500,000 and a prison term of up to 7 years, with bigger penalties for repeat offenders.