The IR operators are ramping up their offerings beyond the casino as revenue from gaming appears to be plateauing, while demand for a greater variety of entertainment is rising, especially during holiday seasons.
Genting Singapore reported a 19 per cent year-on-year drop in third-quarter revenue to $561.9 million on Nov 7, sending its Singapore-listed shares tumbling as much as 7.7 per cent on Nov 8.
The drop was mainly attributed to lower VIP rolling volume, which refers to the total amount of wagers made by high-stakes gamblers.
At $330 million, gaming revenue was down 28 per cent from a year earlier. Against the second quarter of 2024, it fell 14 per cent.
Non-gaming revenue rose 2 per cent to $231.8 million. This was despite the full closure of Hard Rock Hotel at RWS for renovation and re-branding, and the S.E.A. Aquarium’s weekly two-day closure for its expansion into the Singapore Oceanarium.
With all this, Genting Singapore’s adjusted operating profit fell 53 per cent to $163.9 million.
Its stock was down 4.8 per cent at 80 cents at the midday trading break. Genting Singapore has lost about 20 per cent this year, making it among the worst performers on the Straits Times Index, which is up 15 per cent.
The gaming slump has also hit MBS.
In October, MBS reported a 9.5 per cent year-on-year fall in total revenue for the third quarter to US$919 million. The casino business, while still the largest revenue contributor, saw a 14 per cent drop to US$600 million.
While gaming revenue fell, hotel room revenue remained unchanged year-on-year. Even though occupancy rates dipped slightly, the average daily rate per room rose.