SINGAPORE (Nov 11): Casino operator Genting Singapore PLC's net profit fell 43 percent in the third quarter, hit by lower gaming revenue from VIP players, and it warned of challenges in the Asian gaming and tourism industry in a slowing economy.
Gaming revenue dropped 21 percent and net profit fell to S$127.1 million ($98 million) in July-September. That was the lowest since the quarter ending December 2010 when it reported a loss of S$150.3 million. Genting said on Tuesday its premium player business underperformed due to a low win percentage, meaning high rollers won more than expected.
"The Asian gaming and tourism industry is experiencing significant challenges in the face of economic slowdown in our major visitor markets and other environmental factors," the company, which is controlled by Malaysia's Genting Bhd said in a statement.
Genting's core earnings, or adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), declined to S$253.9 million in the third quarter, below an average estimate of S$315.6 million in a Reuters survey of five analysts.
Genting's Resorts World Sentosa and Las Vegas Sands' Marina Bay Sands resort are fighting for a smaller group of high rolling players as China's corruption crackdown and economic slowdown reduce the number of VIPs at their tables.
Genting shares hit a four-year low last month and are down 30 percent this year, making them the worst performer in Singapore's benchmark index and among the worst in the Thomson Reuters Global Casinos & Gaming Index this year.
(1 US dollar = 1.2944 Singapore dollar)