Genting Singapore reported a significant fall in net profit for Q3 of 2019. According to reports, their earnings fell by 24% when compared to their performance at the same time last year. This unexpected fall in profit, according to the firm, was because of less revenue accrued from its gambling business.
According to reports posted on Calvin Ayre, things are not looking too good for the company at the moment. A fall in profit is not the only problem the company is battling right not.
The company’s revenue reduced by 7% to $596.1 million. In addition, the adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was at 278 million. A reduction of 13% when compared with the revenue gotten in 2018.
Gaming revenue also experienced a decline as it fell by 11% to $360.7 million. Revenue from non-gaming businesses experienced a slight gain of 1%, increasing by a sum of $234 million.
These data was released in the course of a filing made with the stock exchange in Singapore. Genting went on to explain that the company still had the capacity to attract affluent or VIP customers all through the region. They also stated that their desire to keep growing in the Asian market has not waned.
This appears to be supported by the company’s confirmation that they intend to bid on a license to develop an integrated resort in both Yokohama and Osaka, Japan.
As part of the commitments made earlier, Genting disclosed that they continue to deliver compelling proposals to get the licenses.
In a statement released by the official spokesperson of the company, he said:
“With offices in Tokyo and Osaka anchored by local teams, the Group has been working diligently and making extensive preparation works for the formal bidding process known as Request for Proposal (RFP) to be issued by cities.”
Currently, Gentig is part of the 3 companies in the race to obtain the Osaka license. As regards their proposal, they said,
“We have fully responded to Osaka’s Request for Concept (RFC) and are now preparing for Yokohama’s RFC. The requirements and expectations of Japanese authorities are complex and of the highest standards, in keeping with the objective of creating a true integrated resort (IR) that will enable Japan to achieve a quantum leap for its tourism economy.”
In spite of the tough conditions listed to get a license, officials at Genting Singapore do not seem to be fazed, rather their quite optimistic.
“Having operated a highly successful true IR in Singapore that encompasses the full spectrum of tourism offerings, we are committed to delivering compelling proposals.”
This project is not the only project the company is presently involved in. Genting has concluded plans to invest nothing less than $4.5 billion to enhance the facilities at its Resorts World Sentosa integrated resort.
This move will considerably further increase the gaming capacity of the venue, as it will provide extra revenue income for the company.
The construction of this massive project is expected to kick off in the 3rd quarter of 2020, according to reports from the company.