In its report, Genting posted total revenue of $1.72bn – a 62% rise on 2021’s total of $1.06bn – and a gross profit of $601m, an 84% increase year-on-year.
Furthermore, it posted an EBITDA of $774m against $448m for 2021, representing a 73% increase.
So, all seems rosy for the sole Sentosa Island casino in Singapore.
Tan Sri Lim Kok Thay, Executive Chairman of Genting Singapore, proudly put the results forward in his letter to the shareholders: “For the financial year ended 31 December 2022, the Group reported a revenue of $1.7bn, an increase of 62% over the previous year, adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) of $774m and net profit of $340m.”
But, while Genting’s results are positive, Thay also had a message of cautious optimism for the shareholders – opting to ground the positive results into reality by adding: “Looking ahead, while we expect continued recovery of travel and tourism, recovery pace may be inconsistent due to international flight capacities and unexpected border measures.
“Further, economic uncertainties and inflationary pressure as well as manpower challenges emerge as areas of concern. We remain cautious but optimistic of our journey towards building a resilient recovery of our business.”
Thay also addressed the issues it had faced in 2022 and hailed the performance of the resort.
“2022 was the year the world began to adapt to living alongside Covid-19, resulting in the reopening of international borders and revival of cross-border travel. While global travel has yet to return to pre-pandemic levels, there was an encouraging 19-fold increase in tourist arrivals to Singapore as compared to 2021.”
The plans for Genting’s place in Singapore are only being further cemented going forward; the casino operator has significant investments coming to fruition – another topic that Thay wrote about in his letter.
“In May 2022, we held a groundbreaking ceremony for a new, highly-themed zone, Minion Land, at Universal Studios Singapore. In November 2022, construction works at the expansion site for our S.E.A. Aquarium began. It will continue to operate even as we triple its size.
“When ready, it will be rebranded as the Singapore Oceanarium offering fresh, new enriching educational experiences and programmes that inspire mindset change and drive action to protect our oceans.
"The new hotel will boost the resort’s room inventory by 389 keys”
“In addition, we are refurbishing three of our hotels in phases, which collectively offer over 1,200 keys."
Thay then touched on the reopening of the Hard Rock Hotel and what it will be following the fresh lick of paint.
“The Hard Rock Hotel Singapore was refreshed and reopened in May 2022, while Festive Hotel will be refashioned into a ‘bleisure’ (business-leisure) and ‘workation’ (work/vacation) hotel with a variety of mobile working spaces and lifestyle offerings for the emerging future of work trends. The new hotel will boost the resort’s room inventory by 389 keys.”
Genting Singapore’s expansion plans are aimed at driving and diversifying its customer base, evident with it wanting to create a ‘workation’ space for its guests and adding more rooms to accommodate them.
People have always flocked to Sentosa Island for the Universal Studios theme park and several tourist attractions, so adding to those makes sense for Genting.
As Gambling Insider explored in its November/December issue, much of Singapore’s gambling industry has benefitted from its quick recovery from the pandemic compared to Macau, of which the island nation has taken much of the latter’s VIP business – a significant contributor in the numbers that Genting has posted.
However, in 2023, Macau has seen a resurgence as a result of China largely dropping its zero-Covid policy – meaning that Genting’s performance through 2023 will be more intriguing when compared with more VIPs heading back to the Chinese gambling province.