Genting 3Q losses narrow on resumption of global resort ops

Genting Bhd 3Q losses narrow on resumption of global resort ops

Genting Bhd 3Q losses narrow on resumption of global resort ops

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KUALA LUMPUR (Nov 26): Genting Bhd’s net loss narrowed to RM130.75 million in the third quarter ended Sept 30, 2020 (3QFY20) from RM786.05 million in the preceding quarter.

The gaming giant said the bigger loss in 2QFY20 was largely due to losses suffered in the leisure and hospitality division following the temporary closure of the resort operations and which have since resumed business with reduced capacity.

Revenue surged by 197.74% to RM3.3 billion, from RM1.11 billion in 2QFY20, the group’s stock exchange filing showed.

On a year-on-year basis, however, the 3QFY20 net loss compares to a net profit of RM305.68 million reported for 3QFY19. The quarterly revenue was also lower by 38% compared with the RM5.3 billion a year earlier.

For the nine months ended Sept 30, Genting saw its net loss balloon to RM1.05 billion from a net profit of RM1.47 billion in 9MFY19. Revenue for the period also fell by almost half to RM8.52 billion from RM16.31 billion a year prior.

On its prospects, Genting said the state of the global leisure, hospitality and tourism sectors globally still remains highly uncertain.

“The recovery prospects of the leisure, hospitality, and tourism sectors globally remain highly uncertain as the Covid-19 situation continues to evolve. While the regional gaming markets have registered signs of early recovery, the industry is expected to remain challenging in the near-term,” it said.

Shares in Genting finished 4.17% or 17 sen higher at RM4.25, valuing the group at RM16.48 billion. The counter saw 14.28 million shares traded.

Genting shares have been hammered as the Covid-19 pandemic wreaked havoc on the tourism, leisure and travel industries. Year to date, the shares are down by about 30% from  RM6.08 on Jan 2.

S Kanagaraju