Genting Malaysia announce losses
Genting Malaysia is preparing to re-open Resorts World Genting, its main casino, and announced results for the first quarter of 2020. Genting Malaysia experienced a net loss of MYR453.9 million ($104.4 million), a substantial drop from the net profit of MYR253.1 million ($58.2 million) earned in the first quarter of 2019.
The company’s worldwide revenue declined by 29%, earning MYR1.96 billion ($451 million) for Q1 2020. Resorts World Genting experienced a revenue drop of 36% to MYR1.23 billion ($283.0 million), and adjusted EBITDA fell 40% to MYR331.2 million ($76.2 million).
The COVID-19 pandemic is to be blamed for the drastic drop in revenue. However, the virus lockdown also interfered with Genting Malaysia’s plans to open a new outdoor theme park. The construction work was impacted by the restrictions issued by the Malaysian government since March.
The Malaysian government eased the Movement Control Order at the beginning of May, but the group’s casinos remained closed, stating that “the Group is currently preparing for the resumption of operations and is focused on leveraging domestic demand to drive visitation and revenue”.
The theme park was set to open its doors in Q3 this year, but was delayed by the virus and pushed back 12 months, to Q4 2021, “due to travel restrictions, weak demand and slow pace of works during Covid-19” they added.
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