“Damn those pesky winners!” OK – so, that’s not actually a true quote, but it’s what we like to think might have been said behind the boardroom doors at Genting Singapore PLC, when they recently reviewed their quarterly profits.
Despite owning two of Singapore’s most envied casinos, the gambling giant experienced a dramatic 35% fall in profits for its Resorts World Sentosa club, which it blamed on the good luck of “premium” gamblers.
Genting Singapore PLC saw its January to March 2013 adjusted earnings plummet from around S$381m this time last year, to a mere S$249.7m. A Reuters poll of financial analysts showed that they had an expected profit of S$359m, so it’s no surprise they’re feeling bitter to say the least. It seems as though Genting’s premium gamblers won more of their bets than expected, in the first quarter and although it’s a disappointing result for 2013 so far, the company coffers are stuffed with almost S$4b cash, part of which is expected to fund Genting’s first casino in Japan.
Meanwhile, one of Genting Singapore’s rivals – Las Vegas Sands Corp – was in high spirits in comparison, after strong results in Macau and Singapore kicked its quarterly earnings through the roof. LVSC’s Marina Bay Sands casino in Singapore, saw its rolling chip volume shoot up 42.2% to $18.21b in the last quarter, which is the highest quarterly volume the casino has seen to-date.