Genting Singapore's net profit dips 5%, eyes expansion in Thailand
Genting Singapore is evaluating and exploring diversification opportunities in Thailand possibly including casinos, which are currently illegal in the Southeast Asian country, the resort and casino operator said in its quarter results on Feb 20.
This comes after the Thai Cabinet approved in principle a draft Entertainment Complex Business Act on Jan 13, a draft law aiming to legalise Thailand’s underground gambling industry and allow the establishment of casino-entertainment complexes to generate tax revenue.
Genting Singapore, which operates Resorts World Sentosa (RWS), said this after reporting a 5 per cent decrease in net profit for the full year ended Dec 31, 2024, falling to $578.9 million.
This is despite high-profile projects in 2024 such as the Asia premiere of Harry Potter: Visions Of Magic interactive art experience at RWS in November, as well as concerts featuring iconic artists such as Michael Learns To Rock and Westlife.
On Feb 20, Genting Singapore reported a 5 per cent year-on-year rise in full-year revenue to $2.5 billion.
While revenue has surpassed pre-Covid-19 levels, rising costs and inflationary pressure remain significant challenges, contributing to a 6 per cent decline in the group’s adjusted earnings before interest, tax, depreciation and amortisation (Ebitda), which stood at $960.1 million.
In the fourth quarter of 2024, the group’s adjusted Ebitda grew 37 per cent quarter on quarter, on the back of better gaming performance.
Gaming revenue grew 26 per cent mainly due to a stronghold rate, while non-gaming revenue declined 15 per cent due to seasonality, the impact of a strong Singapore dollar and elevated travel costs.
According to a report by DBS Bank in September 2024, Thailand’s casino liberalisation is expected to disrupt the gaming landscape in Southeast Asia and could negatively impact visitor numbers at RWS.
The opening of Thai casinos will likely divert considerable traffic away from RWS, particularly from China, Japan and South Korea – key markets for RWS, as Thailand’s relative proximity to North Asia makes it especially competitive, the report said.
The report added that RWS is vulnerable to the emergence of additional casinos in the region, as RWS derives about 70 per cent of its total revenue from foreign visitors.
Said Genting Singapore in its Singapore Exchange announcement: “As we forge ahead, we remain committed to our RWS 2.0 transformative investments to further strengthen our reputation as the region’s premier destination, while driving strong sustainable growth for our stakeholders.”
The RWS 2.0 transformation is a process to revamp the integrated resort into a sustainable tourism destination with brand-new visitor experiences.
These include a waterfront development where groundbreaking took place in November 2024. Slated for completion by 2030, this development involves two new luxury hotels with a total of 700 rooms at RWS.
The resort and casino operator is also looking overseas as it rolls out its plans in Singapore.
Rosalind Ang
The Straits Times
Asia News Network
Rosalind Ang is a business journalist who has been with The Straits Times since 2021. She covers e-commerce and stories on retail businesses.
