GENTING SINGAPORE EARNINGS RELEASE 4Q AND FULL YEAR 2010
Full year performance review – continuing operations
Group revenue for the year increased to S$2,753.3 million compared to revenue last year of
S$49.5 million due to the commencement of business of the four hotels, food & beverage, the casino and Universal Studio Singapore (“USS”) of Resorts World Sentosa (“RWS”), Singapore’s first Integrated Resort (“Singapore IR”).
The The Group recorded a net profit of S$657.2 million mainly attributable to the following:
a) Singapore IR contributed an adjusted EBITDA of S$1,419.0 million in its first year of business.
b) Fair value gain of S$25.4 million on derivative financial instruments arose mainly from the
valuation of the conversion option embedded in the Group‟s convertible bonds as compared
to a loss of S$114.0 million recognised in 2009;
And the above have been reduced by:
a) Depreciation and amortisation of S$236.7 million primarily attributable to the commencement of operations of Singapore IR;
b) Loss on discontinuance of cash flow hedge accounting using interest rate swaps of S$61.6
million arising from settlement of interest rate swaps in December 2010; and
c) Higher finance costs on borrowings of S$207.9 million in 2010 compared to S$39.2 million
recorded in 2009. The higher finance costs was due to interest on borrowings for the
Singapore IR charged to profit and loss account after commencement of operations offset by
decrease in interest on convertible bonds that were fully converted as of February 2010.
Full year performance review – discontinued operations
The loss from discontinued operations amounting to S$619.4 million arose from the disposal of the Group‟s UK casino operations consisting of net profit from UK operations of S$96.9 million, impairment loss on intangible assets of S$478.1 million and loss on disposal of S$238.3 million.
Fourth quarter performance review – continuing operations
For the fourth quarter of 2010, the Group recorded revenue of S$788.5 million and adjusted
EBITDA of S$385.6 million.
Singapore IR contributed revenue of S$775.2 million for the fourth quarter of 2010, an increase of 6% from the third quarter of 2010. The improvement in the revenue is substantially contributed by the increase in the volume of premium players‟ business with significant contribution from USS and the hotels. There was a daily average of around 8,300 visitors to USS with an average spend of S$85 per visitor. RWS‟ hotel occupancy for fourth quarter of 2010 was 79% with an average room rate of S$294.
Adjusted EBITDA of Singapore IR for the fourth quarter of 2010 was S$389.8 million. This is an improvement of the margin from the third quarter of 2010 and is attributable to the increase in revenue. It is, however, diminished by a lower luck factor in the VIP business compared to the third quarter.
(b) any material factors that affected the cash flow, working capital, assets or liabilities of
the group during the current financial period reported on.
Resorts World at Sentosa Pte Ltd (“RWSPL“) spent a total of about S$1.2 billion for construction work-in-progress and other property, plant and equipment during the financial year.
During the year, RWSPL drew down the remaining S$900 million from its syndicated loan facility to finance its construction and development of the Singapore IR bringing total drawdown to S$4.0 billion. In December 2010, RWSPL repaid S$500 million of its syndicated loan facility.
In December, RWSPL signed a commitment letter to refinance its existing loan facilities. The
proposed re-financing of S$4.1925 billion, comprises of a S$3.5 billion term loan facility, S$0.5 billion in revolving credit facility and a S$192.5 million banker‟s guarantee facility. Following this refinancing, RWSPL has terminated the interest rate swaps, resulting in a loss on termination of S$61.6 million and discontinued hedge accounting for the interest rate swaps. The refinancing facilities were completed on 1 February 2011.
The Group also recognised an impairment loss on intangible assets of S$478.1 million and
reversal of deferred tax liability to taxation of S$86.4 million in the year ended 31 December 2010 relating to UK casino operations, giving a net impact of S$391.7 million.
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