In its second quarter review issued last week Genting Singapore plc, incorporated in the Isle of Man, announced revenue of S$979.3 million (US$719.4 million) compared to S$120.1 million (US$88.2 million) in the second quarter of 2009. After the commencement of operations of Resorts World Sentosa, Singapore?s first Integrated Resort in the first quarter of 2010, all major business segments within the Singapore IR continued to grow and strengthen. Group profit after tax in the second quarter of 2010 was S$396.5 million (US$291.2 million), compared to a loss of S$50.7 million (US$37.2 million) in the second quarter of 2009 attributed mainly to the strong result generated from Singapore IR. Last month visitor arrivals to Singapore were over one million for the first time.

UK casino operations’ revenue for the second quarter of 2010 was S$104.9 million (US$77 million), decreased by 3% compared to S$108.0 million (US$79.3 million) in second quarter of 2009, mainly affected by currency translation of the weak Sterling Pound against the Singapore Dollar. The underlying revenue of UK casino operations in Sterling Pounds has improved by 6% contributed by higher business volume.

Calling 2010 ‘a major milestone in the corporate life of the Group’, the company says it created history by opening Singapore’s first Integrated Resort in a record time of 34 months after groundbreaking in April 2007. ‘Our marketing and public relations efforts have made considerable impact in deriving record visitor numbers to RWS and Singapore. We continue to make improvements to our attractions, facilities and infrastructure to meet the expectations of our valued guests. Staff training on service delivery continues, as the resort works towards a distinction for customer service excellence.’

The Board of Directors on 1 July 2010 announced that it has entered into a conditional sale and purchase agreement in connection with the sale to Genting Worldwide (UK) Limited, an indirect wholly-owned subsidiary of Genting Malaysia Berhad, of the Group’s UK casino operations at a consideration of £340 million (US$533.3 million), which may be adjusted in accordance with the adjustment mechanism. The proposed divestment is conditional on, amongst others, the approval of the Company’s and GENM’s shareholders. The Company?s Extraordinary General Meeting will be held on 18 August 2010.

Some investors have expressed concern over the recent proposal by Genting’s unit, Genting Malaysia Bhd, to acquire Genting Singapore’s affiliate UK casino businesses. There is also some concern over the company’s global investment strategy, with Genting Malaysia’s subsidiary, Genting New York LLC winning the bid to develop and operate a video lottery facility at the Aqueduct Racetrack in New York with a proposal that included US$380 million as an upfront licensing fee. However, as the same concerns were expressed over the Singapore venture, investors must hope that the management is still on the right track. (E-08.16.10)

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