The Smart Investor
    Facebook Instagram
    Thursday, March 23
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Dividend Stocks»Genting Singapore Doubles its Final Dividend to S$0.02: 5 Highlights from the Integrated Resort Operator’s 2022 Earnings
    Dividend Stocks

    Genting Singapore Doubles its Final Dividend to S$0.02: 5 Highlights from the Integrated Resort Operator’s 2022 Earnings

    Ke Xuan TanBy Ke Xuan TanFebruary 22, 2023Updated:March 2, 20235 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Genting Singapore
    Source: gentingsingapore.com
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    The outlook of the travel and tourism industry is important to an integrated resort (IR) developer such as Genting Singapore Limited (SGX: G13). 

    Since the last update on its earnings in November 2022, there have been further relaxation of travel rules that favour the group’s performance. 

    Chief among them is the reopening of China’s borders. 

    Although the Singapore Tourism Board expects this year’s visitor arrivals to only reach between 30% to 60% of pre-pandemic levels, Genting Singapore’s share price has nonetheless performed well. 

    Since the beginning of December 2022, its shares have risen by 13.6%. 

    Let’s find out if the fiscal full-year 2022 results live up to the market’s upbeat expectations.

    Travel recovery supported revenue and profits

    After two tepid years which saw disappointing revenue figures for 2020 and 2021, Genting Singapore’s revenue for 2022 finally jumped by 62% year on year to S$1.7 billion. 

    Both the gaming and non-gaming divisions contributed to this positive result. 

    Gaming revenue increased by 53% from last year’s S$802.6 million to this year’s S$1.2 billion, while non-gaming revenue surged by 90% year on year, posting a 2022 revenue of S$490.8 million. 

    Operating profit more than doubled year on year from S$227.8 million in 2021 to S$456.4 million in 2022. 

    Meanwhile, net profit for 2022 surged by 85% year on year to reach S$340.1 million. 

    The rise in net profit was comparatively more muted than the increase in operating profits due to higher utility costs, increased casino tax rates, and accelerated depreciation on assets relating to the group’s ongoing renovation and expansion plans.

    Robust financial position and cash flows

    Despite the challenging conditions over the past two years, the group braved the storm while maintaining a strong balance sheet. 

    Debt was brought down to a low level of S$5.5 million after a full redemption of nearly S$200 million of unsecured and unsubordinated bonds in October 2022. 

    In comparison, Genting Singapore’s cash balance of S$3.5 billion dwarfs its borrowings. 

    A deeper dive into its cash flows reveals that operating cash flows increased by more than S$400 million year on year to S$806.7 million. 

    This was predominantly a result of the group’s profit before tax more than doubling in 2022. 

    Capital expenditure was dialled down in 2022, resulting in free cash flow sharply reversing from negative S$567.1 million in 2021 to positive S$619.7 million in 2022. 

    New initiatives come online in 2023

    Even though Genting Singapore posted much better financial results in 2022 than the preceding two years, the gears for the group to outdo its most recent performance are already turning. 

    Against the encouraging backdrop of increasing flight connectivity and capacity, 2023 will also mark the commencement of some of the IR operator’s ongoing initiatives. 

    For example, the group will launch the first Southeast Asian exhibition that combines art and virtual reality in March 2023. 

    Two months following that, it plans to unveil the newly-renovated Festive Hotel as a lifestyle destination hotel. 

    The refurbished hotel will add 389 rooms to the group’s overall hotel inventory.

    RWS 2.0 transformation is on track

    The expansion projects centred around Resorts World Sentosa (RWS) are on track to be completed by late 2024. 

    Over the next two years, more than 20,000 square metres of commercial space will undergo a major transformation. 

    The completed site caters to a wide range of entertainment, retail, and dining options for visitors. 

    Given the plentiful floor space, the newly-upgraded venue will serve as the ideal setting for more intimate lavish events such as banquets and seminars, or large-scale happenings such as concerts. 

    While we await for the facelift to be completed, RWS continues to attract more footfall that will boost its 2023 numbers.

    As a testament to the desirability of its prime location, RWS was once again elected as the official venue to host premium events that will likely attract wealthy patrons. 

    One such event is the celebration of the 10-year anniversary of Asia’s 50 Best Restaurants 2023. 

    Another noteworthy mention is the Wine Pinnacle Awards 2023, which returns to RWS for its third edition. 

    These events will help to improve the visibility of the IR, increasing its attractiveness as a leisure and business destination for locals, tourists, and corporations.

    Final dividend doubled

    Genting Singapore has declared a final dividend of S$0.02 per share in line with the improved results. 

    This is double the final dividend announced for 2020 and 2021. 

    Together with the interim dividend of S$0.01 per share declared in its fiscal 2022 first half (1H2022) earnings, this brings the total 2022 dividends to S$0.03 per share. 

    In turn, this translates to a trailing dividend yield of 3.0%. 

    Combining the most recent strong financial results with the alluring prospects of further tourism recovery, investors may be rewarded with even higher dividends going forward. 

    If you’re looking to invest in 2023, our latest FREE report can guide you. It shows you how to find dividend stocks in SGX, and a nearly fool-proof way of building your portfolio. Many people love dividend investing, but few truly know how to profit from it consistently. Click the link here to download our new report and discover the secrets!

    Follow us on Facebook and Telegram for the latest investing news and analyses!

    Disclosure: Tan Ke Xuan does not own shares in any of the companies mentioned.

    Yahoo
    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    People Checking Mobile Phones

    3 Billion-Dollar Singapore Stocks Offering Dividend Yields of 5% or Higher

    March 23, 2023
    Human Brain with Glowing Lights

    How the Art of Thinking Clearly Can Help Us in Investing: Part 5

    March 23, 2023
    Office Buildings 2

    Solid as a Rock: 4 Singapore Blue-Chip Stocks to Fortify Your Investment Portfolio

    March 23, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.