Genting Malaysia posts US$82.8m loss for Q2

Genting Malaysia is likely to reopen in November, analysts say.
Genting Malaysia is likely to reopen in November, analysts say.

The company registered a loss of MYR348.1m (US$82.8m) for the second quarter of the year.

Malaysia.- Genting Malaysia has shared financial results for the second quarter of 2021, showing a reduced loss of MYR348.1m (US$82.8m) when compared to a loss of MYR900.4m in Q2 2020.

The company noted that the first half of the year 2020 had been heavily impacted by the Covid-19 pandemic and multiple closures.

For the second quarter of 2021, revenue grew 611.7 per cent year-on-year from MYR114.9m to MYR817.9m (US$195m). However, revenue for the first half was down 30.4 per cent, from MYR2.07bn to MYR1.44bn.

Gaming revenue for the first half was MYR1.14bn, down 23.3 per cent year-on-year. The leisure and hospitality business saw revenue rise by MYR155.7m when compared to the previous year.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the second quarter was positive by MYR45.6m. In the second quarter of 2020, the company recorded an adjusted EBITDA loss of MYR486.2m. For the first six months of 2021, Genting Malaysia saw a negative EBITDA of MYR64.8m (US$42.2m).

Analysts expect a worse third quarter for Genting Malaysia

Analysts at banking group Nomura predict third-quarter results are likely to be worse than the second quarter.

Resorts World Genting‘s casino has been closed since May and the company closed all of its services in June, after Malaysian Prime Minister announced a nationwide Covid-19 lockdown.

According to analysts, the closure means a cash burn of nearly MYR3.5m (US$834,900) per day.

Analysts previously expected the casino venue to reopen by the end of August. However, the country has seen a rise in Covid-19 cases and Genting Malaysia may not reopen until November.

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Covid-19 Genting Malaysia land-based casino