Genting Corporation PLC’s Latest Earnings: Revenue And Profit Soar

Yesterday, Genting Corporation PLC (SGX: G13) reported its second-quarter earnings. The reporting period was from 1 April 2017 to 30 June 2017.

As a brief background for some context, Genting Singapore is the operator of 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.

You can learn more about the company here or catch up with the previous quarter’s earnings here.

Financial highlights

Here’s a rundown on the financial figures for the second-quarter:

1. Revenue rose 24% year on year to $596 million.

2. Genting Singapore recorded net losses (attributable to shareholders) of $10.5 million last year. In a turnaround, the casino operator registered $143 million in net profit attributable to shareholders.  

3. Earnings per share (EPS) followed suit, turning a loss of 0.09 cents from 2016’s second-quarter to a profit of $0.019 in the reporting quarter.

4. Cashflow from operations was $263.4 million and capital expenditure was $14.4 million. Genting Singapore generated free cash flow of $249 million.

5. As of 30 June 2017, the group had $5.7 billion in cash and equivalents and $1.08 billion in debt. The latest figures are a healthy improvement from the $4.9 billion in cash and equivalents and $1.55 billion in debt that Genting Singapore last year.

Genting Singapore experienced a spike in revenue. The casino operator also turned the losses recorded last year into profits. Meanwhile, Genting Singapore also generated positive free cash flow and strengthened its balance sheet.

The board of directors proposed a 1.5 cents interim dividend as well. There was no interim dividend paid last year.

Operational Highlights

For the second-quarter, Genting Singapore’s gaming segment led the way with a 33% increase to $442.3 million. Meanwhile, the non-Gaming revenue posted a 3% year on year increase to a record $152.7 million. Genting Singapore’s management team included the following commentary on the quarter:

“The Group has achieved revenue growth for 3 sequential quarters.

Business momentum remained healthy with 24% year-on-year increase in revenue to $596.1 million attributable to higher rolling win percentage in the premium player business. The Group generated Adjusted Earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) of $292.7 million, representing a 152% increase over the same quarter last year. All major businesses registered stronger EBITDA at the back of improved operating margin as we continue to drive strategy to focus on better margin business and maintain lower impairment of receivables.

For the quarter ended 30 June 2017, our attractions business achieved daily average visitations exceeding 19,000 with our hotel segment accomplishing an occupancy rate of over 95%.”

The firm also provided a brief update on the Japan integrated resort (IR):

“At the Group level, we are closely following the progress of the Japan IR Execution Bill, which will pave the way for the formal bidding process of the Japan gaming licences.”

Foolish summary

At its closing price of $1.18 yesterday, Genting Singapore traded at 24 times trailing earnings and had a dividend yield of 2.5%.

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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.