GGRAsia – Genting Malaysia narrows 2Q loss to US$83mln

Genting Malaysia narrows 2Q loss to US$83mln

Aug 27, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck, World

Global casino operator Genting Malaysia Bhd narrowed respectively its second-quarter and first-half loss, judged year-on-year, it said in a Thursday filing to Bursa Malaysia.

The second-quarter loss was MYR348.1 million (US$82.8 million), versus a loss of MYR900.4 million in the prior-year quarter.

The first-half 2021 loss narrowed to MYR831.7 million, from MYR1.32 billion in the first half 2020.

The group noted in its latest filing that the first-half 2020 had faced “severe impact” from the Covid-19 pandemic, that had resulted in the “temporary closure of its resort operations worldwide”.

The group’s flagship casino complex is Resorts World Genting in Malaysia (pictured). It also runs casinos in the United States – via associated businesses – and in the Bahamas, the United Kingdom and Egypt.

Genting Malaysia said in a press release accompanying its latest results, that the group’s U.S. businesses “continue to record improved operating trends as Covid-19 restrictions are eased”.

It added the group’s U.K. venues had also reopened in the reporting period, “to positive reception”.

But Genting Malaysia said no dividend had either been proposed or declared for the second quarter and the six months ended 30 June, 2021.

The firm noted that the current “temporary closure of resort operations in Malaysia delays the group’s recovery”. The property’s promoter announced on May 31 that the whole of the complex was to be temporarily shut due to an uptick in Covid-19 infections in Malaysia. The property remains shut.

Second-quarter 2021 group revenue rose 611.7 percent year-on-year, to nearly MYR817.9 million, from MYR114.9 million. But first-half revenue was down 30.4 percent year-on-year, to MYR1.44 billion, from MYR2.07 billion in the first half 2020.

The group’s second-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were positive by MYR45.6 million, compared to an adjusted EBITDA loss of MYR486.2 million in the second quarter 2020.

First-half 2021 adjusted EBITDA was negative by MYR64.8 million, circa half the MYR130.8 million adjusted EBITDA loss recorded in the first six months of 2020.

Genting Malaysia said that group-wide, its gaming revenue for the first half this year fell 23.3 percent year-on-year, to just under MYR1.14 billion, versus nearly MYR1.49 billion in the first half of 2020.

The firm noted that in second-quarter 2021, there had been higher revenue in the leisure and hospitality businesses – including gaming – in the U.S. and the Bahamas, to the tune of MYR384.5 million judged year-on-year. This was “mainly due to better performance from Resorts World Casino New York City”.

The Malaysia operation’s leisure and hospitality business – where the group runs several non-gaming tourism complexes as well as Resorts World Genting – saw second-quarter revenue rise by MYR155.7 million year-on-year. This was “mainly due to an increase in the overall volume of business from gaming and non-gaming segments as a result of the easing of operational and travel restrictions”.

Though it noted Resorts World Genting “has been temporarily closed since 1 June 2021 compared with the temporary closure of operations from mid-March to mid-June 2020”.

In the U.K. and Egypt, leisure and hospitality revenue had been up by MYR152.1 million year-on-year in the second quarter this year. This was “largely due to the group’s land-based casinos in the U.K, which have reopened since mid-May 2021 compared to a temporary suspension of the land-based casino operations throughout second-quarter 2020,” it stated.

(Updated 10.15am, Aug 27)