It hasn’t been so long ago that Genting Singapore released their profits for the second quarter of the financial year. The posted numbers weren’t much of a surprise and they reiterated what most analysts had expected – revenue was going up and overall, the casino industry was doing better compared to the same period last year.
The growth was significant. In the second quarter of 2018, the results stood at $129.6 million, which was a decent increase on the $104.8 generated over the same period a year before. The results such as they are do matter quite a lot, because Genting took a hit in its revenue in the second quarter, which means the potential maximum had been missed.
The Growth Continues with a Caveat
However, the strong upswing trends means that Q3 is likely to add even greater results to operators. There have been significant reliefs for everyone operating in the industry, including a drop in the earnings before interest. A common denominator known as EBITDA fell by 8% for the same period a year before.
Still, there were at least some minor signs of worry. Gaming revenue didn’t fare as well as a year before 2018 Q2. Overall, it dropped down $297 million, which was around 10% compared to 2017. Even though the reporting was quite detailed, no information was included about the VIP segment, which has long been treated by casinos and analysts as a separate source of revenue.
Still, Genting Singapore made a statement on Friday, which touched on the future and nature of the VIP segment. According to Genting, the VIP segment has also been growing, even if the revenue had slowed down by the end of the Q2. Still, the operator managed to chalk it all up to ‘luck’, and expressed the company’s readiness to turn the tide in the third quarter.
Genting spoke about a hypothetical situation where its property, the Resorts World Sentosa (RWS) casino would have been able to post significantly better results had it not been for the slowdown that the industry, and Genting in particular had experienced.
Still, Genting remained quite upbeat about the prospect of things stabilizing and evening out in favor of the operator. Without affecting revenue any further. Amid a solid growth trend and with the help of new customers, Genting estimated that its operations will be bolstered notably in Q3.
Moving Past the Gambling Tables
Genting also announced that it was working on a series of varied events, which were intended to excite visitors with their lifestyle options. Exciting gourmet and social events were all on the menu, the company stated. All of these changes are expected to take place in RWS at an unspecified time yet. Still, they are “rolling-out soon,” company officials have confirmed.
Genting is also considering whether it is worth entering the newly-opened Japanese market. Missing out now may have a long-term impact on the casino’s revenue. Then again, investing into a market that isn’t certain to take off may be even riskier.