Despite the huge contributions from Resorts World Sentosa (RWS), Genting Singapore has recorded a net loss of $396.3 million in Q1 due to a $478.1-million impairment loss from the intangible assets on its UK casino operations.
The company’s net loss of $396.3 million for the first quarter compares with a $31.9-million net loss over the same period last year. This was translated to a 3.28-cent loss per share in the first quarter compared with a loss per share of 0.31 cents over the corresponding period last year.
Revenue for Q1 more than quadrupled to $460.4 million compared with $105.4 million last year. The big increase in revenue was attributed to the fresh contributions of the company’s Singapore Integrated Resort (IR), which has been running for more than three months, and a better “luck factor”– which is a measurable figure that reflects the payout potential of casino games – from its UK casino operations.
Genting explained the impairment loss and said that it was "mainly due to the unfavourable economic climate in the UK, which is expected to adversely impact the group’s UK business”.
It added that if not for the impairment loss, the company would have recorded a net profit of $81.8 million. This was mainly attributed to the $109-million contribution of the Singapore IR in the form of earnings before interest, tax, depreciation and amortisation (Ebitda); a $16.7-million Ebitda contribution from the company’s UK casinos; and $27.8 million from fair-value gain on derivative financial instruments stemming from the valuation of a conversion option embedded in the company’s convertible bonds.