4 Things That Investors Should Know About Genting Singapore PLC Now

Genting Singapore PLC (SGX: G13) is the operator of one of Singapore’s tourism landmarks, the integrated resort Resorts World Sentosa. Among the resort’s many attractions are one of Singapore’s two casinos and the Universal Studios Singapore theme park.

Investors or potential investors of Genting Singapore may want to know these four things about the company:

1. Falling revenue and earnings

Source: Genting Singapore 2015 annual report

In Genting Singapore’s last five fiscal years (from 2011 to 2015), both its revenue and EBITDA (earnings before interest, taxes, depreciation, and amortisation) have been trending down. This has partly been due to weakness in the company’s gaming business, especially in its VIP gaming segment.

Results for the resort operator in the first-half of 2016 were more of the same: Revenue had declined by 11% while EBITDA dropped by 29%.

2. A falling share price

Given Genting Singapore’s business performance in the last few years mentioned above, it’s no real surprise to find that the company’s share price has done poorly as well. In the five years ended 21 September 2016, Genting Singapore’s shares have tumbled by 54% in price.

The falling share price has led to the decline in some of Genting Singapore’s valuation measures as well. For instance, the company’s price-to-sales ratio of around 4 right now is actually near a five-year low (the ratio was at 6.2 five years ago).

3. Strong balance sheet

Although Genting Singapore’s top- and bottom-lines have been declining in recent years, the firm has still managed to end its latest quarter with a balance sheet that has more cash than debt. As of 30 June 2016, the company has S$4.87 billion in cash and total debt of just S$1.55 billion.

4. Growth driver

Right now, the company’s main operating asset is Resorts World Sentosa. But, the company revealed back in 2014 that it’s in a joint venture to develop an integrated resort on South Korea’s Jeju island. The resort is expected to open progressively from 2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.