Operator News
Malaysia – Genting records a loss of RM900.42m for its second quarter
By Phil - 28 August 2020
Genting Malaysia Bhd (GENM) generated a net loss of RM900.42m for its second quarter ending June 30, 2020, due to the closure of its resort casinos since mid-March due to the coronavirus pandemic, and redundancy costs of RM71.5m.
The loss was more than double the RM417.96m net loss reported for the preceding quarter.
Revenue came in at RM114.9m, a decrease of 96 per cent from RM2,601.5m in 2Q 2019. The Group’s leisure and hospitality segment recorded lower revenue in 2Q 2020 as a result of the temporary closure of the group’s resort operations worldwide since mid-March 2020 in compliance with the respective government’s directives amid the outbreak of the COVID-19 pandemic. Several properties have resumed operations with limited capacity since mid-June 2020.
Genting said it had ‘lower revenue from the leisure and hospitality business in Malaysia by RM1,673.9m or 95 per cent mainly due to the decline in overall volume of business from gaming and non-gaming segments as a result of the temporary closure of the operations since 18 March 2020. Resorts World Genting (“RWG”) has
resumed operations with limited capacity since 19 June 2020.’
It said there was a ‘reduction in revenue from the leisure and hospitality businesses in the United States of America and Bahamas, mainly due to temporary closure of the resort operations in the US and Bahamas throughout 2Q 2020 and a change in accounting estimate on revenue recognition of RM38.4m relating to Resorts World Casino New York City.
It also cited ‘lower revenue from the leisure and hospitality businesses in the United Kingdom (UK) and Egypt by RM386.9m or 92 per cent, largely due to the temporary suspension of the land-based casino operations throughout 2Q 2020.’
The group also reported its share of losses in an associate company, Empire Resorts Inc, mainly due to Empire’s financing costs as well as depreciation and amortisation.
“The group’s share of Empire’s operating loss was RM26.1m, as Empire’s operating performance was adversely impacted by the temporary closure of Resorts World Catskills (RWC) since mid-March 2020,” Genting said. “Whilst the group is encouraged by the resumption of its business in Malaysia and the UK, uncertainties surrounding the full impact of the pandemic on the Group’s operations and financial performance remain. In the meantime, development work for the expansion project at RWNYC is currently underway 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.”
