Genting Singapore, the operator of Resorts World Sentosa, declared that despite a rise in earnings in the initial six months of the year, elevated utility charges and amplified casino duty rates under the fresh regulatory framework resulted in a decrease in profits.

The enterprise reported income of S$6.631 billion (£3.993 billion/€4.722 billion/$4.818 billion) for the initial six months of the year, an increase of 19.5% compared to the same period last year.

Gaming income was S$4.752 billion, an increase of 7.5%. Hotel room income was S$63.6 million, while attractions income more than doubled to S$69.7 million, with other non-gaming sources contributing S$43.6 million.

The Genting Singapore board stated that the recovery was driven by robust demand for casino gambling following the effects of the COVID-19 pandemic, sufficient to offset the ongoing difficulties faced by international travel.

“While international visitor arrivals remain considerably below pre-pandemic levels due to restricted flight capacity, unusually high airfares and varying reopening protocols across our regional markets, the group has profited from pent-up demand and made notable progress in its recovery in the initial six months of 2022,” the company stated.

Rental income contributed another S$6.7 million, although this was the only segment where earnings declined, while hotel and support services income was S$4.4 million, compared to negligible income in 2021.

Although Genting Singapore saw a rise in income, the expenses associated with sales, including gaming levies, escalated at a faster pace, surging by 33.4% to S$463 million. These new taxes are part of Singapore’s gambling industry changes, which also involve the creation of a new oversight body and redefining illicit gambling activities. As a consequence, Genting’s overall profit dipped by 3.8% to S$200.1 million. Operational expenditures also climbed, primarily due to asset impairments, resulting in a 9.4% decrease in operating profit to S$110.2 million. After accounting for finance costs, joint venture earnings, and taxes, Genting Singapore’s net profit reached S$84.4 million, a 4.3% drop from the corresponding period last year. As a result, earnings per share also decreased, falling from S$0.73 to S$0.70. Despite the reduction in profits, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at S$289 million, compared to S$256.8 million in the same period of 2021. At the end of the quarter, news reports indicated that MGM Resorts had approached Genting Singapore regarding a possible takeover. However, Genting refuted these reports.

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