Genting Singapore PLC’s Latest Earnings: What Investors Should Know

Last Friday, Genting Singapore PLC (SGX: G13) reported its 2017 first quarter earnings. The reporting period was for 1 January 2017 to 31 March 2017.

As a quick background, Genting Singapore is the operator of the integrated resort, Resorts World Sentosa. Among the resort’s many attractions are a casino and the Universal Studios Singapore theme park. You catch up with the results from Genting Singapore’s previous quarter here.

Financial highlights

The following’s a rundown on some of Genting Singapore’s latest financial figures:

1. Revenue dropped 4% year-on-year to $586.6 million.

2. But, net profit attributable to shareholders soared from just $10.8 million in 2016’s first quarter to $181.1 million.

3. Earnings per share (EPS) was 1.50 cents, up big from 2016’s first-quarter EPS of 0.09 cents.

4. Cash flow from operations was $301 million and capital expenditure was $18.1. Genting Singapore’s free cash flow was thus $282.9 million, up from last year’s $253.6 million.

5. As of 31 March 2017, the company had $5.64 billion in cash and equivalents and $1.08 billion in debt. This is an improvement from last year’s $5 billion in cash and equivalents and $1.55 billion in debt.

Genting Singapore’s revenue was down, but its profit was up sharply; the improvement came from better gross margins and higher other operating income. Elsewhere, Genting Singapore maintained a healthy balance sheet and generated strong free cash flow.

The company’s trade and other receivables fell to $170.7 million in the reporting quarter, down significantly from the $533.8 million recorded on 31 March 2016.

Operational highlights

Genting Singapore’s Gaming revenue rose 9% year-on-year to $434.4 million for the reporting quarter. But, non-Gaming revenue posted a 4% decline to $151.4 million.

Genting Singapore’s management team shared the following comments on the company’s recent business performance:

“Resorts World Sentosa (“RWS”) continues to lead Singapore’s tourism sector. Voted as Asia Pacific’s Best Integrated Resort by the TTG Travel Awards for six consecutive years, RWS has consistently been the key driving force behind Singapore’s success in attracting international visitors, delivering more than one-third of international visitor arrivals annually.”

“We ushered in the year of the rooster with Universal Studios Singapore and the S.E.A. Aquarium receiving its 25 millionth and 10 millionth visitor respectively. These two milestone events are a testament to RWS’ market-leading position in the region’s travel and leisure market.

RWS also pioneered the first Chinese language comedy musical production in Singapore – “Mulan the Musical”, and played inaugural host to the Singapore Michelin Guide Street Food Festival featuring more than 12 Michelin-starred restaurants and Bib Gourmand eateries. Our integrated resort hotels have continued to outperform industry-wide matrices with consistently high room occupancy rates of over 92%.”

Management also commented on Genting Singapore’s plans for an integrated resort in Japan:

“We are continuing with our growth and diversification plan and are allocating resources in tandem with the progress of the Japan IR Execution Bill, which will pave the way for the formal bidding process of the Japan gaming licences.”

Genting Singapore’s shares closed at $1.08 each last Friday. At that price, the integrated resort company traded at around 29.8 times trailing earnings and had a dividend yield of 2.8%.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.