Genting S’pore warns of significant drop in Q2 net profit

SINGAPORE — Casino operator Genting Singapore today (August 4) said it expected to report a significant decline in second-quarter net profit after tax as a result of fair value losses on derivative financial instruments stemming from unfavourable market conditions and unrealised foreign exchange translation losses.

However, Genting Singapore, which runs the Resort World Sentosa integrated resort, added that for the three months ended June 30, its 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.

Genting Singapore shares rose 2.9 per cent to close at 90 cents each today amid active dealing before the profit warning that was put up on the Singapore Exchange website at 11.01pm.