Genting Malaysia Announces MYR726.3 Million Net Loss in Q32020 Due to Covid-19
The Group’s operating performance in 3Q20 was on the path of recovery due to the resume of activity, but the operator still felt the impact of the complete shutdown in March and the ongoing strict measures to limit the spread of the virus.
Total Revenue in 3Q2020 Halved
In 3Q2020, Genting Malaysia Berhad managed to reach a total revenue of MYR1.42 billion, or 54% of the amount achieved in the same period last year. Although some venues across its markets reopened, operations were running under strict restrictions to mitigate the spread of Covid-19, and the resorts and casino company suffered loss before tax and a net loss of MYR361.3 million and MYR726.3 million respectively.
In any case, the restart of activity in June 2020 was beneficial for the adjusted earnings before interest, taxation, depreciation, and amortization (Ebitda), which amounted to RM310.7 million.
During the nine month period ended September 2020, the shutdown in countries across the whole world due to the unprecedented health crisis hit the leisure and hospitality industry and dragged down the Group’s total revenue by 56% to MYR3.49 billion.
Despite the extraordinary situation, the company registered an adjusted Ebitda of MYR179.9 million. Including depreciation and amortization, impairment losses, and finance costs, the Group reported a loss before tax of MYR1.85 billion and net loss of MYR2.1 billion.
Breakdown by Markets
Genting Malaysia Berhad’s activity in Malaysia was restarted in June with limited capacity and under strict government health and safety protocols. Revenue for the period July-September was equal to 66% of the same period last year. Business from the general market and non-gaming segments as Resorts World Genting (RWG) experienced slowdown due to the ongoing measures.
The United Kingdom and Egypt also suffered losses and revenue was down 68% to MYR131.4 million, while adjusted loss before interest, taxation, depreciation, and amortization (LBITDA) amounted to MYR50.5 million. In July, the company confirmed its plans for the permanent closure of three properties in Torquay, Bristol, and Margate together with numerous job reductions across the world.
Operations Continue Under Strict Measures
In the United States of America and Bahamas, the Group recorded lower revenue by 80% to RM69.9 million and an adjusted LBITDA of RM71.7 million. Commercial-sector casinos in New York, including Genting Malaysia Berhad’s Resorts World Casino New York City (RWCNYC), reopened on 9 September as per the state’s orders.
The venue was closed since 16 March, just two weeks after the first cases of coronavirus in the state were confirmed. The casino launched a 21-point safety plan to comply with the directives of authorities.
The company expects this challenging period for the leisure, hospitality, and tourism industries to continue at least in the short term. For instance, the Malaysian government issued a Conditional Movement Control Order in several states in the country, which will have a significant impact on business activity.
The Group is also planning to finish an outdoor theme park for the Resorts World Genting complex by the middle of 2021, as initially planned.
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