Genting net profits cut in half for H2 2021

Decreased visitorship during the pandemic caused the 49% decline.

Genting Singapore posted a significant 49% decline in net profit to $95.1m in the second half of 2021, compared to the corresponding period last year.

This is due to a decrease in visitorship attributed to the increase in community cases and the recent emergence of the Omicron variant. A series of enhanced safe management measures, such as the reduction in group size for social gatherings and prohibition of dining-in at food and beverage establishments, was introduced to contain the spread of the virus. However, these had a profound negative impact on the operating capacity and visitor arrivals.

During the financial year, the group also acquired leasehold land to expand a Singapore integrated resort, which increased its non-current assets. The acquisition was included in the purchases of property, plant and equipment amounting to $942m in the group's cash flows for the financial year ended 31 December 2021.

Whilst the pandemic has severely impacted the business of the group, Genting Singapore said some signs allowed a sense of optimism for the travel and tourism industry. It said it is hopeful that with further relaxation of regulations and gradual resumption of mutual vaccinated travel lanes, more travellers will return to Singapore in 2022. However, such tourism flow is expected to be mostly small groups of leisure and business travellers.