Genting Singapore reports Q2 loss as revenue plummets
The Genting Singapore arm of Malaysian conglomerate Genting Group has reported a net loss of SgD$163.3m (£90.6m/€100.7m/$119.2m) for the second quarter of 2020, following a sharp drop in revenue as its properties were closed amid the novel coronavirus (Covid-19) pandemic.
Revenue for the three months to 30 June amounted to SgD$41.3m, down 94% from SgD$636.8m in the same period last year.
Genting Singapore was forced to close all casino and attractions in its Singapore Integrated Resorts portfolio for almost the entire quarter, with all land-based locations shut between 6 April and 30 June. This included Resorts World Sentosa sites Universal Studios Singapore, S.E.A. Aquarium, Adventure Cove Waterpark and Dolphin Island.
As such, gaming revenue plummeted 99% from SgD$441.1m to SgD$6.5m, while non-gaming revenue was also down 92% from SgD$195.0m to SgD$16.3m.
However, Genting was slightly boosted with revenue from outside of Singapore Integrated Resorts operations, with revenue from its investment business and other hospitality and support services rocketing from SgD$604,000 to SgD$18.5m.
Genting did not go into detail on its expenses and costs for the quarter, but it did state that due to the overall revenue decline, it posted an adjusted loss before interest, tax, depreciation and amortisation (LBITDA) of SgD$84.9m, compared to SgD$294.4m in earnings last year.
When accounting for net exchange losses relating to investments, share-based payment and other expenses, LBITDA amounted to S$131.8m, a big drop from S$296.8m in earnings in Q2 of 2019.
As such, Genting ended the quarter with a net loss of SgD$163.3m, compared to a net profit of SgD$168.4m at the same point last year.
“At the onset of the pandemic, visitor arrivals dropped very significantly from February 2020,” Genting Singapore explained. “Despite the swift implementation of a series of cost containment measures including payroll rationalisation as well as other productivity initiatives, the impact of suffering almost zero revenue during the temporary closure period in the second quarter 2020 was devastating.”
Though properties have started to reopen in Singapore in recent weeks, Genting said it remains “pessimistic” on its overall financial performance for the rest of the year, as global travel remains highly restricted.