Genting Malaysia Reports Loss of Over 175 Million Dollars in Third Quarter
Posted on December 3, 2020 | 10:11 am
Genting Malaysia, the division of the big international conglomerate Genting Group, has reported a loss of 178.5 million dollars in the third quarter which would roughly convert into MYR726.2 million.
The revenue for the three months to 30 September amounted to MYR1.42 billion, significantly less than in the corresponding period last year. In the third quarter of 2019 the group recorded revenues of MYR2.63 billion.
The sharp decline in revenues is entirely attributable to the restrictions imposed by authorities due to the novel coronavirus pandemic. The Genting Group owns and operates several resorts and casinos in Malaysia, Egypt, the United States, Bahamas, the United Kingdom and Singapore, and all of them had to reduce their activity since the outbreak of Covid-19.
Reduced Business Volumes Across the Board
The leisure and hospitality business in Malaysia saw revenues reduced by 34.2% compared to last year, mainly due to reduced business volume from the general market and non-gaming segment. The only revenue stream that remained unchanged for Genting compared to 2019 was from mid to premium players.
Leisure and hospitality was impacted significantly in the United Kingdom as well, with revenues recording a significant drop of 68.3% to MYR131.4 million. Casinos in the UK did resume activity in August, but with reduced capacity.
The Future Is Uncertain
The situation was even worse for Genting’s operations in the United States of America and Bahamas, with revenues declining by 80.4% year-on-year to MYR69.9 million. That sharp decline was due to the temporary closure of Resorts World Casino New York City, which reopened with reduced capacity in September.
The industry will continue to suffer during the coming months, especially when it comes to land-based casinos. In the official report that describes the financial results for the third quarter, Genting is warning its shareholders that the future is still very uncertain. The report states that a gradual recovery is expected, but sounds a note of caution:
“Given the dynamic operating environments both locally and abroad, uncertainties surrounding the full impact of the pandemic on the Group’s operations and financial performance remain. The Board wishes to caution that the Group expects its financial results for the financial year ending 31 December 2020 to be adversely impacted.”