Genting registers RM1bil loss in 2020, flags highly uncertain year ahead

KUALA LUMPUR: Genting Bhd registered a small net profit in the last quarter, but warned that the outlook for 2021 is "highly uncertain" due to the Covid-19 pandemic.

For the full year ended Dec 31, 20 the group made a loss of RM1bil.

Revenue was halved to RM11.56bil compared with RM21.6bil a year ago.

The group has declared a special single-tier dividend of 8.5 sen per share for FY20. Total dividend (including the interim dividend of 6.5 sen) for FY20 will amount to 15 sen per share.

"The outlook for the global tourism, leisure and hospitality industries remain highly uncertain," Genting said in a statement today.

"While the regional gaming market has continued to register some level of recovery, significant challenges will persist in the coming year given the negative impact of the pandemic on the sector," it added.

In Malaysia, the group has recently reopened its businesses last week in Resort World Genting, Resort World Langkawi and Resorts World Kijal following the temporary closure since Jan 22 due to the movement control order (MCO).

The group said it 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.

It is sticking to the target to open the outdoor theme park, Genting SkyWorlds by the middle of 2021, which Genting said is a key growth initiative for its operations in Malaysia.

In the UK, the group’s land-based casinos remain temporarily closed in compliance with government directives to limit the spread of COVID-19.

Meanwhile, the group's operations in the US is focused on strengthening its market leading position in the state of New York.

"The development of the new upscale 400-room Hyatt Regency JFK at Resorts World New York hotel is progressing well and is set to open in phases from the middle of 2021," it said.

The group offered a realistic view on its medium-term challenges.

"Looking ahead, even as the world begins to gradually recover with countries opening up their economies, it is evident that international travel is unlikely to return to pre-COVID levels anytime soon," it said.

Genting Singapore Ltd Group (GENS) remains cautious of the travel and tourism sector’s recovery and is closely monitoring pandemic updates, travel restrictions and vaccination progress globally as well as in Asia.

"The GENS Group will continue to pursue its growth strategy with the SG$4.5 billion mega expansion (RWS 2.0) to anchor RWS as Asia’s leading leisure and tourism destination. Revisions to design works of RWS 2.0 incorporating health and safety measures are ongoing to adapt to the post- pandemic environment," it said.

One of the bright spot for the group is its plantation business.

"Genting Plantations Bhd will track the performance of its mainstay Plantation segment, which is in turn dependent principally on the movements in palm products prices and the group’s FFB production," it said.

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