SINGAPORE, Feb 21 — Genting Singapore is exploring diversification opportunities in Thailand, possibly including casinos, following the Thai Cabinet’s recent approval in principle of a draft law aimed at legalising the country’s underground gambling industry and permit the development of casino-entertainment complexes to boost tax revenue.
The resort and casino operator, which runs Resorts World Sentosa (RWS), said this in its quarterly results announcement on February 20, as it reported a 5 per cent drop in full-year net profit to S$578.9 million (RM1.9 billion) for the financial year ended December 31, 2024, according to a report in The Straits Times yesterday.
This comes despite high-profile events at RWS in 2024, including the Asia premiere of Harry Potter: Visions Of Magic interactive art experience and concerts featuring Michael Learns To Rock and Westlife.
Revenue for the year rose 5 per cent year-on-year to S$2.5 billion, surpassing pre-Covid-19 levels.
However, rising costs and inflationary pressures contributed to a 6 per cent decline in the group’s adjusted earnings before interest, tax, depreciation and amortisation (Ebitda), which stood at S$960.1 million.
For the fourth quarter of 2024, the group’s adjusted Ebitda grew 37 per cent quarter-on-quarter, driven by stronger gaming performance.
Gaming revenue rose 26 per cent, helped by a strong hold rate, while non-gaming revenue fell 15 per cent, affected by seasonality, the strong Singapore dollar, and higher travel costs.
A DBS Bank report from September 2024 warned that Thailand’s casino liberalisation could disrupt the regional gaming industry and divert visitors away from RWS, particularly from China, Japan, and South Korea — key markets for the Singapore casino.
The report noted that RWS derives about 70 per cent of its total revenue from foreign visitors, making it vulnerable to increased competition in the region.
“As we forge ahead, we remain committed to our RWS 2.0 transformative investments to further strengthen our reputation as the region’s premier destination, while driving strong sustainable growth for our stakeholders,” Genting Singapore said in its Singapore Exchange filing.
The RWS 2.0 transformation, aimed at revamping the integrated resort into a sustainable tourism destination, includes a waterfront development that broke ground in November 2024.
Expected to be completed by 2030, the project will feature two new luxury hotels with a total of 700 rooms.
Even as it rolls out expansion plans in Singapore, Genting Singapore is looking overseas, particularly at the potential Thai market.
