Genting Singapore suffers 90% profit loss in 2020
Profits continued to plunge despite the reopening of Resorts World Sentosa in H2 2020.
Genting Singapore has suffered a 90% profit loss, with only a net profit of $69.2m for FY ended 31 December compared with $688.6m a year before.
Revenue for FY ended 31 December 2020 fell by 57% from $2.48b to $1.063b compared with 2019. The gaming segment earned $700m, a 57% drop from $1.61b in 2019 whilst the non-gaming segment fell from $857m to $299m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 68% to $372.6 million. This was despite government aid and cost-cutting measures implemented by the company.
Genting Singapore attributed most of the profit in 2020 to a great performance during the Lunar New Year, prior to the surge of COVID-19 cases.
“The rest of financial year 2020 was very negatively impacted by regulatory restrictions, border closures and operating capacity due to the COVID-19 pandemic,” the firm said.
The firm also described its financial performance for 2020 as the “worst financial performance since the opening of our Singapore Integrated Resort in 2010.”
Genting Singapore said it will remain cautious despite countries opening up their economies as they see that international travel is unlikely to return to pre-COVID levels anytime soon.
“The Group remains cautious of the travel and tourism sector’s recovery and we are closely monitoring pandemic updates, travel restrictions and vaccination progress globally as well as in Asia. The Group will continue to pursue our growth strategy with the $4.5 billion mega expansion (“RWS 2.0”) to anchor RWS as Asia’s leading leisure and tourism destination. Revisions to design works of RWS 2.0 incorporating health and safety measures are ongoing to adopt to the post-pandemic environment,” the company added.