In early August, Genting Singapore PLC (SGX: G13) reported its 2018 second quarter (2Q FY18) earnings update. As a quick introduction, Genting Singapore is the operator of the integrated resort, Resorts World Sentosa.
Here, we will look at 10 things that investors should know from its latest earnings update.
1. Revenue for the reporting quarter declined by 6% year-on-year to S$560.3 million.
2. Operating profit the quarter improved by 1% year-on-year to S$228.4 million.
3. Profit attributable to shareholders for the quarter grew by 24% year-on-year to S$177.6 million.
4. Earnings per share (EPS) grew 24% year-on-year to 1.47 cents.
5. Genting Singapore generated operating cash flow of S$244.5 million in the quarter, down from S$263.4 million seen last year.
6. As of 30 June 2018, Genting Singapore’s total debt stood at S$1.1 billion while its cash and cash equivalents stood at S$4.0 billion, giving it a net cash position of S$ 2.9 billion.
7. In Japan, the anticipated Integrated Resorts Implementation Bill was enacted by the Japanese Diet on 20 July. Genting Singapore has been hiring a new team of Japanese nationals in different disciplines to prepare for the bid.
8. The company declared an interim dividend of 1.5 cents per share for the quarter.
9. Gaming segment’s revenue declined by 8% year-on-year to S$406.1 million. On the other hand, non-gaming segment’s revenue was up by 1% year-on-year to S$153.5 million.
10. The group commented the following on its latest performance:
“For the second quarter of 2018, the Group reported revenue of $560.3 million and adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) of $265.9 million. Resorts World Sentosa (“RWS”) continues to be at the forefront of Singapore’s leisure and entertainment industry, attracting visitors from all around the world. Our signature attractions performed well during the second quarter of 2018 with average visitation exceeding 18,000 daily. Hotels continued to outperform industry with average occupancy of over 91% for the quarter. In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but luck factor was not in our favour. On a hold-normalised basis, RWS would have generated an Adjusted EBITDA of approximately $293 million”
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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.