PETALING JAYA: Genting Malaysia Bhd’s net quarterly loss has widened by 15.7% year-on-year (y-o-y) to RM483.59mil.
The adverse impact to the group’s earnings was primarily due to the temporary closure of its businesses in Malaysia and the United Kingdom, in addition to the group’s properties operating at a reduced capacity in compliance with the respective government directives amid the pervasiveness of the Covid-19 pandemic.
The group’s revenue plunged 68.13% to RM623.35mil on the back of lower revenue from the leisure and hospitality business in Malaysia, the UK, Egypt, the United States and Bahamas.
The impact to Genting Malaysia’s earnings were mitigated by a reduction in operating expenses, payroll and related cost savings from lower headcount.
In a statement, the group said the outlook for the tourism, leisure, and hospitality industries remained highly uncertain as recovery setbacks persist amid ongoing travel restrictions in response to the pandemic.
“Consequently, the group maintains its cautious stance on the near-term prospects of the leisure and hospitality industry.
“In Malaysia, the imposition of a third movement control order (MCO 3.0) nationwide will continue to adversely impact the group’s business following the temporary closure of Resorts World Genting’s (RWG’s) casino operations from 2May 24, ” it said.
It added that it will continue to assess its operating structure to align its cost base to the challenging operating and business environment.
Genting Malaysia stressed that the health and safety of the RWG community remained central to the group’s efforts.
While it continued to work towards the completion of Genting SkyWorlds outdoor theme park in the third quarter of 2021, the opening date of the park is dependent on developments surrounding the Covid-19 situation and its impact on the leisure and hospitality sector in the country.
In the UK, Genting Malaysia’s land-based casinos have reopened since May 17.
In the US, the group remained committed to reinforcing its position in the New York gaming market by leveraging synergies between RWNYC and Resorts World Catskills to develop and grow its strong local market exposure.
Preparations are also in place for the opening of the new 400-room Hyatt Regency JFK at Resorts World New York hotel from the middle of 2021.
Meanwhile, Genting Bhd, which owns 49.5% of Genting Malaysia, saw its quarterly losses dip further from RM132.32mil in the first quarter last year to RM331.76mil in the first quarter of 2021.
Its revenue dropped by almost half from RM4.11bil to RM2.25bil.
All its divisions recorded declines with the leisure and hospitality division being the main contributor to the lower revenue.