Genting Malaysia to “leverage domestic demand”

Revenues dropped 96 per cent in Q2 and 61 per cent in Q1.
Revenues dropped 96 per cent in Q2 and 61 per cent in Q1.

The group has also confirmed its movie-inspired theme park is still scheduled to open in mid-2021.   

Malaysia.- Casino and hotel operator Genting Malaysia says it will focus on continuing to cut costs and on domestic demand, as the future of its business remains uncertain.  

In its latest presentation to investors, the firm analysed the evolution of its casino and resorts businesses in Malaysia, the US and the Bahamas, as well as its UK and Egypt unit.  

It said that as a whole, revenues dropped 96 per cent year-on-year in the second quarter, and 61 per cent in Q1. Net profits for both periods fell by more than 100 per cent.  

The firm said: “Business volumes severely impacted by unprecedented disruptions to the group’s resort operations worldwide. 

“Recalibrated operating structure in 2Q20 creates stronger platform for future profitability and long-term shareholder value.” 

The company’s main property in Malaysia, Resorts World Genting, closed in mid-March due to the Covid-19 pandemic and reopened with limited capacity on June 19, “to positive response.” 

The company sees “steady growth despite increasingly challenging operating environment” and will continue to actively manage its cost base to mitigate the financial impact of the pandemic. 

Even so, the operator said “the full extent of the impact of Covid-19 on the group’s operations remains uncertain” and that its goal was to focus on business efficiency to align cost structure with that new operating environment.  

It said it plans to “leverage domestic demand to drive visitation and revenue”.  

The group confirmed it remains working on the completion of Genting SkyWorlds, its movie-inspired theme park, which is targeted to open in mid-2021, although some analysts were predicting the inauguration would be delayed until 2022. 

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