SBC News Voice of the Sports Betting Industry
Exchange rate impacts combined with a decline in derivative asset values have swung Getting Singapore into the red, as the Asian gambling operator declared combined losses of SGD $16.9 million (£7.7 million) for its Q2 2015 performance (period ending 30 June).
Ahead of its performance update, Genting governance had issued a profit warning to the Singapore stock exchange.
Genting would alert that its corporate performance had suffered from net foreign exchange losses of SGD $84 million (£38 million) combined with derivative asset declines of SGD $95 million (£43 million).
The operator recorded key metric declines during the period as gross revenues fell 23% to SGD $578 million (£261 million) (Q2 2014: $750 million). Lower revenue generation would impact EBITDA earnings which fell 6% to SGD $296 million. Genting would post a 91% decline in Q2 2015 net profits to SGD $12.5 million
Tan Hee Teck, Genting Singapore’s President commented on the results
“These are related to our investment in public-listed hospitality and gaming companies. We have substantially reduced our investment in this portfolio. Because it is related to the gaming industry, over the last six to nine months (due to unfavourable market conditions) the value of the shares have dropped quite a bit.”
Outlining its corporate recovery, Genting governance noted that the company had improved of its debt expenses reducing provisions to SGD $56 million for the period. Genting governance have high expectations for its US $1.8 billion resort ‘World JeJu’ development in South Korea which is set to open in 2017, the operator stated that its development was progressing on its planned schedule.
