Genting Malaysia in the red for second quarter

PETALING JAYA: Genting Malaysia Bhd (GenM) recorded a net loss of RM900.42 million for the second quarter ended June 30, from a net profit of RM416.48 million a year before, as its operating performance was severely impacted by the temporary closure of its resort operations worldwide amid the Covid-19 outbreak.

The group’s total revenue decreased by 96% to RM114.9 million in Q2’20, from RM2.6 billion previously.

For the first half, GenM saw a net loss of RM1.32 billion on a revenue of RM2.07 billion, from a net profit of RM684.77 million and turnover of RM5.34 billion during the same period last year.

In its Bursa filing, the group said the Malaysia leisure and hospitality business reported lower revenue by 64% to RM1.3 billion, primarily attributable to the unprecedented disruptions to its operations, as well as the exceptionally high hold percentage in the mid to premium players segment recorded in H1’19.

In the UK and Egypt, the group recorded a 52% decline in revenue to RM404.4 million, largely due to the suspension of its land-based gaming operations since mid-March. Similarly, operations in the US and Bahamas registered lower revenue by 61% to RM289.1 million mainly attributable to the decline in volume of business following the temporary closure of its resorts since mid-March 2020.

An interim single-tier dividend of 6 sen per ordinary share was declared.

Looking ahead, the group said overall pandemic-related fears and uncertainty may result in the slow recovery of the tourism, leisure and hospitality and gaming industries, but it has been heartened by the positive reception to the phased reopening of Resorts World Genting in Malaysia.

“The group will continue leveraging domestic demand to drive traffic growth and revenue whilst actively managing its cost base. Meanwhile, the group is focused on the completion of the outdoor theme park which is targeted to open in mid-2021,” it said.

In the UK, a majority of the group’s land-based gaming operations have recommenced since Aug 15, while in the US, Resorts World New York City (RWNYC) and Resorts World Catskills remain temporarily shuttered until further notice. Operations as Resorts World Bimini in the Bahamas have been re-suspended on renewed concerns from local authorities surrounding the pandemic.

“The group will continue to proactively manage its operating cost structure as it navigates through the dynamic situation in the US and Bahamas. In the meantime, development work for the expansion project at RWNYC is currently under way and the group is working towards the completion of the first phase of the new 400-room hotel, which is expected to open by the first quarter of 2021,” it said.

source https://www.thesundaily.my/business/genting-malaysia-in-the-red-for-second-quarter-YC3703760