Genting Singapore shares plunge on profit warning

SINGAPORE — Genting Singapore fell as much as 11 per cent to a six-year low of S$0.80 today (August 5) after the casino operator warned of a significant fall in second-quarter net profit as a result of fair value losses on derivative financial instruments stemming from unfavourable market conditions and unrealised foreign exchange translation losses.

At the close of the market, Genting Singapore gained back some ground to end 8.3 per cent lower S$0.825.

In addition to the net profit warning, Genting Singapore, which runs the Resort World Sentosa integrated resort, also said yesterday that its second-quarter adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) is expected to be comparable to the preceding quarter.

In the first quarter, Genting Singapore reported adjusted EBITDA — the key measure for operating performance in the gaming industry — slumped 43 per cent to S$228.1 million as VIP business tumbled.

Genting Singapore will report its second-quarter results on August 13. “Shareholders and investors are advised to exercise caution when dealing in the shares of the company,” it said.