Posted on: February 18, 2022, 09:59h.
Last updated on: February 18, 2022, 10:05h.
Genting Singapore is ready to move forward with its plans to upgrade Resorts World Sentosa in Singapore. The update will begin this year and will take around two years to complete.
With COVID-19 concerns starting to subside, Genting Singapore is ready to embark on a mission it announced almost three years ago. In return for its duopolistic control of gambling in Singapore along with Las Vegas Sands, it will upgrade its Resorts World Sentosa (RWS) resort.
Resorts World Sentosa Gets a Facelift
In 2019, Genting Singapore said that it would inject around US$3.34 billion into the international gaming destination. Although COVID-19 is still a threat, it serves as a good reason to begin the upgrades now. Slower traffic at the property means less guest interference and more freedom to complete the work.
As part of the larger plan, Genting Singapore will spend around $287 million to upgrade three of the hotels at RSW. Hard Rock Hotel Singapore, Hotel Michael, and Festive Hotel will undergo renovations beginning in the second quarter, and will continue for the next two years.
In all our developments for RWS 2.0 and major refurbishment works … we are acutely aware of the need to embody into our design a more sustainable environment. We are engaging various stakeholders and consultants to incorporate the latest technology and research to achieve this goal,” said Genting Singapore in a filing with the Singapore Exchange.
An additional $287 million will lead to additional upgrades, including a transformation of the Resorts World Convention Centre, and more.
Net Profit Falls Due to COVID-19
In announcing the start of the renovations, Genting Singapore also provided an update on its financial health. It reported that its net profit for the second half of last year fell 49% due to lower traffic and an increase in area COVID-19 cases.
The net profit for the six months ending December 31 fell to SG$95.1 million (US$70.63 million) compared with SG$185.9 million (US$138.06 million) in the same period last year. The revenue for this period was also lower at SG$512.5 million (US$380.63 million). This was a drop of 17% compared to the previous year.
The report stated that increased safety management measures played a role in the decline. Measures such as a reduction in group size and prohibition of dining-in had a “profound negative impact” on the amount of visitor traffic, as well as its operating capacity.
Gaming revenue declined 16% year-on-year to SG$359.7 million (US$267.15 million) in the second half of last year. Non-gaming revenue, however, rose 2% to SG$147.2 million (US$109.32 million).
As a result, directors propose a final dividend of SG$0.01 (US$0.0074), unchanged from over a year ago.
The group’s total revenue increased marginally over the year. From SG$1.064 billion (US$790.23 million) a year ago, fiscal year 2021’s revenue rose to SG$1.067 billion (US$792.24 million). At SG$183.3 million (US$136.13 million), net profit was up 165%.
Earnings per share increased to SG$0.0152 (US$0.011) in 2021 from SG$0.0057 (US$0.0042) a year earlier. The group’s net asset per share was SG$0.654 (US$0.49) as of December 31, 2021. This is an increase from SG$0.649 (US$0.48).
Genting Singapore added that there are positive signs for the tourism sector, such as the relaxation of COVID-19 regulations and the resumption of vaccinated travel routes. It expects a gradual return of visitors over the next two years. The operator will use these opportunities to create new visitor offerings and refresh existing ones.