Genting Singapore's net profit increased by 85.5% in FY22

Genting Singapore reported a net profit of S$340.1m (£207.8m/€236.4m/US$255.9m) in full-year 2022, a gain of 85.5% during a period in which both net profit and costs increased dramatically.

Genting Singapore's revenue for the year was S$1.72 billion, which included S$1.22 billion in gaming income and S$478.0 million in non-gaming revenue. Non-gaming revenue was comprised of hotel rooms, attractions, and other non-gaming expenses.

The remainder revenue totaled S$13.5 million in rental income and S$4.8 million in hospitality and support services income.

Tan Sri Lim Kok Thay, executive chairman of Genting, stated that the reopening of international borders in an effort to recover from the Covid-19 outbreak aided in increasing visitation to Genting Singapore's resort, Resorts World Sentosa.

“2022 was the year the world began to adapt to living alongside Covid-19, resulting in reopening of international borders and revival of cross-border travel,” he said. “The pent-up demand for tourism and social activities helped to elevate the visitor arrivals to Resorts World Sentosa especially from our key markets in the region.”

But, he cautioned that further progress could be gradual, citing persistent issues with Covid-19 recovery and inflation.

“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,” he continued. “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.”

Results for the entire year

The overall cost of sales for the year was $1.12 billion, an increase of 51.1% year on year. This total includes S$43.1 million in inventory costs, S$29.6 million in net impairment on trade receivables, and S$1.2 million in long-term leasing charges.

The entire cost of sales comprised $26.8 million in amortisation.

After deducting all sales costs, the gross profit was S$601.8m, an increase of 84.1% year on year. In terms of additional expenses, administrative costs totaled S$137.3m for the year, an increase of 15.7%.

Selling and distribution costs increased by 52.6% to S$25.0 million, while other operational costs more than quadrupled to S$34.8 million.

These expenses, together with interest income of S$50.9 million and other operating income of S$875,000, resulted in an operating profit of S$456.3 million, more than doubling the amount achieved in FY21.

Financing expenditures of S$2.4m impacted the total even more. Nevertheless, this was compensated by a S$2.8m share of results before joint venture.

As a result, pre-tax profit remained relatively steady at S$456.7 million.

Taxes of S$116.6m resulted in a net profit of S$340.1m for the year.

For the fiscal year, adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) totaled S$774.1m.

By fLEXI tEAM