In anticipation of potential changes in Chinese tourist behaviour prompted by warnings to avoid gambling, Genting Singapore‘s Board of Directors highlights the company’s focus on non-gaming offerings as a strategic response. This move aims to diversify revenue streams and mitigate the impact of any reduction in Chinese gamblers.
The company is responding to questions by shareholders ahead of its Annual General Meeting on April 18.
Positive outlook on Chinese arrivals??
Genting Singapore anticipates a positive contribution to its performance from the recent increase in Chinese arrivals, with China becoming the largest source of tourists for Singapore. The relaxation of visa regulations between Singapore and China is cited as a key factor driving this trend.
Non-gaming development initiatives??
The company outlines its upcoming non-gaming ventures, including the phased opening of new developments such as the Asia Premiere featuring Harry Potter: Visions of Magic and the Singapore Oceanarium. These initiatives, along with offerings like Illumination’s Minion Land and upscale restaurants, aim to enhance Genting’s appeal and attract guests from diverse segments and markets.
Financing strategy for transformation??
Genting Singapore addresses shareholder inquiries regarding financing for the ambitious SG$6.8 billion (€4.7 billion) investment earmarked for the transformation of Resorts World Sentosa (RWS). The company assures investors that the investment will be primarily funded through internal resources, minimizing concerns about immediate earnings impact.
Despite the significant investment, Genting Singapore reports robust financial performance, with a substantial increase in net profit for fiscal year 2023. Resorts World Sentosa (RWS) also delivered impressive Adjusted EBITDA, reflecting its resilience and contribution to the company’s overall success.
Share awards for Independent Directors??
Concerns regarding share awards for Independent Directors (IDs) are addressed, with Genting Singapore clarifying that all Independent Non-Executive Directors are eligible for and receive share awards under the Performance Share Scheme. These awards aim to align the interests of IDs with shareholders and ensure long-term commitment through vesting conditions and selling moratoriums.
Warning from Chinese Embassy??
In March, the embassy of China in Singapore?issued?a warning to its citizens residing in the city-state, advising them to abstain from all forms of offshore gambling, citing violations of Chinese laws. The advisory was part of heightened efforts by China to crack down on Chinese nationals engaging in gambling activities across Southeast Asian countries.?
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