Genting posts RM1.7b loss in 2Q20

The group ’s revenue plunges 80% in 2Q20 to RM1.1b due to the Covid-19 impact on its leisure and hospitality segment

by TMR/ pic credit:

GENTING Bhd recorded a loss before tax (LBT) of RM1.66 billion for the second quarter of 2020 (2Q20) compared to a profit before tax (PBT) of RM1.33b billion in 2Q19.

The loss was due mainly to LBITDA and higher impairment losses recorded, as well as a share of loss from joint ventures and associates in 2Q20 compared to a share of profit in 2Q19.

The group posted a plunge of 80% in revenue for 2Q20 to RM1.11 billion compared to 2Q19’s RM5.45 billion. The decrease was attributed mainly to the leisure and hospitality segment.

In the first half of 2020 (1H20), the group posted a RM1.88 billion LBT compared to a PBT of RM2.51 billion in 1H19.

The loss was due mainly to lower 1H20 Ebitda, higher impairment losses and a share of loss from joint ventures and associates contributed mainly by Genting Malaysia Bhd (GENM) group’s loss in Empire Resorts Inc of RM178.1 million.

The 1H19 PBT included a gain of RM138.7 million from the disposal of a subsidiary.

For 1H20, the group reported revenue falling 53% to RM5.22 billion compared to RM11.02 billion in 1H19, primarily from the leisure and hospitality segment as a result of the Covid-19 outbreak.

The board has declared an interim single-tier dividend of 6.5 sen per ordinary share for 1H20, similar to 1H19.

GENM group’s total revenue plunged 96% to RM114.9 million in 2Q20 on the back of an adjusted LBITDA of RM486.2 million.

Its operating performance was severely impacted by the temporary closure of its resort operations worldwide, with several properties having resumed operations with limited capacity since mid-June.

GENM group posted LBT of RM1.04 billion and a net loss of RM923.2 million.

In 1H20, it reported a 61% decline in total revenue to RM2.07 billion and adjusted LBITDA of RM130.8 million.

After taking into consideration impairment losses, finance costs, depreciation and amortisation, GENM group registered LBT and net loss of RM1.49 billion and RM1.38 billion respectively.

GENM group maintains a cautious stance on the near-term prospects of the leisure and hospitality industry.

The board wishes to caution that the GENM group expects its financial results for the financial year ending Dec 31, 2020, to be adversely impacted.

Meanwhile, Tan Sri Alwi Jantan has been appointed as chairman of GENM group from deputy chairman previously. The appointment follows Tan Sri Lim Kok Thay’s redesignation from chairman to deputy chairman.