Genting Hong Kong has announced that it expects to record a consolidated net loss of US$200 million to US$220 million for the six months ended 30 June 2017, excluding the share results of Travellers International Hotel Group, when it releases its financial results later this month.
In a profit warning filed with the Hong Kong Stock Exchange overnight, Genting Hong Kong attributed the loss to a range of factors, including a more competitive environment resulting from a 13.7% increase in new luxury cruise ship capacity in the industry, full half-year startup losses in 2017 at its new German building shipyards as they prepare to cut steel for new ships, additional depreciation and amortization of new Genting Dream and shipyards as well as additional interest of its new Genting Dream ship.
The group had previously reported a consolidated net loss of US$73.7 million for the six months through 31 December 2016.
The profit warning doesn’t take into account Genting Hong Kong’s share in Travellers, although those results will be heavily impacted as well following the suspension of gaming operations at its Resorts World Manila property for three weeks in June.
“Despite the decline in its consolidated net results, the performance of the underlying core Asian cruise business has improved in the second quarter of 2017 compared to the first quarter of 2017 and the Group remains positive on the underlying core Asian cruise business for the second half of the year,” the company said.
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