Genting Singapore, operator of Resorts World Sentosa, has approved a 2019 dividend payout of USD $213 million to shareholders, reaffirming investor confidence despite ongoing COVID-19 challenges.
At the company’s 35th annual general meeting—held remotely due to the pandemic—shareholders approved an aggregate year-end dividend of SGD 302 million ($213.25 million), or SGD 0.025 per share ($0.018). The resolution passed overwhelmingly, with 99.92% of votes in favor.
Shareholders also reelected Tan Hee Teck as director. He will continue as president and COO, while billionaire Lim Kok Thay, son of Genting founder Lim Goh Tong, remains in control of the company. Forbes currently estimates Lim’s net worth at $2.5 billion.
Japan in Focus
Genting Singapore will spearhead the group’s push into Japan, where the government is finalizing legislation for three multibillion-dollar integrated casino resorts. The company confirmed its participation in Yokohama’s Request-for-Concept process and is preparing for the Request-for-Proposal phase expected later in 2020.
Genting’s prospects in Yokohama strengthened after Las Vegas Sands, its rival in Singapore’s duopoly, withdrew from the Japanese race earlier this year.
“The Japan IR investment opportunity continues to feature in our long-term growth strategy,” the company said in a statement.
COVID-19 Headwinds
While committed to its Japan ambitions, Genting acknowledged that 2020 will be financially challenging. Resorts World Sentosa has been closed since April 7, with regulators extending restrictions amid the city-state’s 32,000-plus confirmed COVID-19 cases.
“The Group remains pessimistic on its outlook for the remaining year,” Genting said.
The operator is already coming off an 8.8% profit decline in 2019, when earnings fell to $486 million. A second consecutive year of lower profits appears likely.
Still, Genting Singapore and rival Las Vegas Sands have pledged to invest $3.3 billion each into their integrated resorts, securing exclusive casino rights in Singapore through 2030.
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