Malaysia – Revenues plunge by 57 per cent at Genting MalaysiaBy Phil - 1 March 2021
Genting Malaysia saw its fourth quarter revenue fall by 57 per cent to RM1,041.1m although it achieved positive adjusted EBITDA in FY20 despite ‘unprecedented challenges, anchored by the Malaysian operations.’
EBITDA came in at RM170.4m for Q4 despite the leisure and hospitality business operating at a reduced capacity amid the prevalence of the Coronavirus Disease 2019 (COVID-19) pandemic. The Group recorded loss before tax (LBT) of RM285.1m and net loss of RM258.2m.
In FY20, the Group reported a 56 per cent decline in total revenue to RM4,528.8m, predominantly due to the unprecedented disruptions to the Group’s global operations in the year resulting from the severe outbreak of the COVID-19 pandemic. Nevertheless, the Group achieved adjusted EBITDA of RM350.3m.
Genting said: “The leisure and hospitality business in Malaysia recorded a 60 per cent decline in revenue to RM644.7m. The decrease was primarily due to travel restrictions imposed in line with the implementation of a Conditional Movement Control Order in most states in the country from 14 October 2020. Additionally, Resorts World Genting (RWG) continues to operate with reduced capacity in accordance with strict health and safety protocols consistent with the government’s guidelines and global best practices since reopening in mid-June 2020. Consequently, overall lower volume of business was reported at the resort. Nevertheless, the impact to the Group’s earnings was mitigated by higher hold percentage in the mid to premium players segment, coupled with lower operating expenses as well as a reduction in payroll and related costs due to lower headcount.”
In the United Kingdom (UK) and Egypt, the group’s revenue declined by 73 per cent to RM116.1m whilst in the United States of America (US) and Bahamas, revenue from the Group’s leisure and hospitality business recovered to 67 per cent of the level recorded in the fourth quarter ended 31 December 2019 (4Q19) despite operating at a reduced capacity since reopening on 9 September 2020. Resorts World Casino New York City (RWNYC) had registered approximately the same level of gross gaming revenue as 4Q19 up until the property limited its operating hours from mid-November 2020 in compliance with the government mandate.
In Malaysia, the introduction of a second Movement Control Order in various states since 22 January 2021 will impact the Group’s business following the temporary closure of RWG, Resorts World Langkawi and Resorts World Kijal during this period. RWG has resumed operations since 16 February 2021 while RW Langkawi and RW Kijal recommenced business on 19 February 2021. The Group has recalibrated its operating structure and re-engineered its processes as well as its cost base to address the unprecedented challenges and to capitalise on the eventual recovery of the leisure and hospitality sector.