SINGAPORE (Reuters): Genting Singapore PLC, which owns one of Singapore's two multibillion-dollar casino complexes, posted a 33% fall in first quarter net profit on Thursday, due to lower gaming revenues. The Singapore unit of Malaysia's Genting Bhd earned S$205.5mil (US$163.9mil) in the January-March period, down from S$305.4mil a year earlier.
Higher depreciation with the opening of new attractions in Genting's theme park in Singapore, as well as new hotels and a museum, also hit its earnings. Its Singapore casino, Resorts World at Sentosa, made S$376.4mil ($300.24mil) in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) last quarter, down from S$528.4mil a year earlier.
Genting's EBITDA was lower than the $472.5mil reported by Singapore rival Marina Bay Sands, owned by U.S. casino giant Las Vegas Sands. Resorts World's net revenue for the first quarter was S$787mil ($627.8 mil), 14% below a year earlier, due to the casino's lower win percentages and business volumes in the premium player business, Genting said. Marina Bay Sands and Resorts World are the world's second and third most expensive casino complexes after MGM's CityCenter in Las Vegas, and their profits and profit margins are among the highest globally.