UPDATE 1-Genting Singapore's Q2 disappoints as gaming revenue slows
* Genting Singapore Q2 EBITDA S$306.3 mln vs consensus S$361 mln * Hotel occupancy and room rates in Q2 at record high * Genting, Las Vegas Sands' casinos in Singapore saw lower Q2 gaming revenue By Charmian Kok SINGAPORE, Aug 10 (Reuters) - Genting Singapore, which owns one of Singapore's two multibillion-dollar casino complexes, posted lower quarterly core earnings that missed expectations as gaming revenue fell and expenses rose. The Singapore casino operator's results miss came after rival Las Vegas Sands, owned by billionaire Sheldon Adelson, announced smaller-than-expected quarterly earnings in July, hit by lower profits from the city-state and Macau. With gaming revenue in Singapore facing headwinds, analysts say Genting's Malaysian parent Genting Berhad faces increasing pressure to expand overseas. In June, the gaming group applied to raise its stake in casino operator Echo Entertainment to above 10 percent, potentially pitting it in a $3 billion-plus takeover battle against Australian billionaire James Packer. Genting Singapore said on Friday its gaming revenue in April-June dipped 4 percent from a year ago, as it earned S$306.3 million ($246.25 million) before interest, tax, depreciation and amortisation (EBITDA), or core earnings, down from S$382.7 million a year earlier. This was below an average estimate of S$361 million, according to three analysts surveyed by Reuters. The company derives most of its EBITDA from its Singapore casino Resorts World Sentosa. "Gaming revenue dipped slightly, but this was not unexpected given the overall slowdown in business environment, even in Macau," said Tan Hee Teck, Genting Singapore's president and chief operating officer, according to briefing notes of an analyst call seen by Reuters. Genting Singapore's EBITDA was also lower than the $330.4 million reported by Singapore rival Marina Bay Sands, owned by Las Vegas Sands. However, adjusted property EBITDA at Sands' Singapore complex plunged 75 percent from a year ago, as gaming revenues fell 7.5 percent. NON-GAMING BUSINESS GAINS Marina Bay Sands and Resorts World are the world's second- and third-most expensive casino complexes after MGM's CityCenter in Las Vegas, and their profits and profit margins are among the highest globally. Earlier, in an emailed statement, Genting Singapore said its adjusted EBITDA was S$311 million. Genting Singapore's second-quarter net profit fell 32 percent to S$165.5 million from a year ago. Genting Singapore said its non-gaming business performed well, with hotel occupancy and average room rates in the second quarter at an all-time high of 92 percent and S$432, respectively, boosted by more daily visitors at theme park Universal Studios Singapore. Genting Singapore shares have fallen about 15 percent so far this year, underperforming the benchmark Straits Times Index's 15 percent rise in the same period. Genting Berhad now sits on more cash than any other gaming operator in the world. Earlier this year, Genting Singapore raised S$2.3 billion through perpetual securities, stoking speculation it will embark on an acquisition spree. Q2 results for Singapore's two casino-resorts in U.S. dollars: Resorts World Sentosa Marina Bay Sands Net revenue $564.5 mln $694.8 mln Adjusted $250 mln $330.4 mln EBITDA EBITDA margin 44.3 pct 47.6 pct
- Mexican train derails, stranding 1,300 migrants headed toward U.S.
- Gaza toll nears 100, militants threaten Israeli airport |
- Haskell collapses in Texas court as details of Texas murder read
- A game of two popes: Vatican plays down talk of World Cup rivalry
- Obama tells Israel U.S. ready to help end hostilities