Global cruise ship and gaming investor Genting Hong Kong has revealed that it expects to record a consolidated net loss of over US$600 million for the first six months of 2020 due to the devastating impact of COVID-19 on the company’s primary business arms.
The updated forecast follows a recent profit warning in which Genting HK said only that it expects its net loss in 1H20 to be “significantly higher” than the corresponding 2019 loss of US$56.5 million, with the suspension of cruise services and restricted operations in its entertainment and leisure businesses severely limiting revenue.
On Friday, the company issued a filing with the Hong Kong Stock Exchange in which it stated the “operating loss and unaudited consolidated net loss of the Group for the six months ended 30 June 2020 are expected to be not less than US$300 million and US$600 million respectively, as compared to an operating loss of US$38.3 million and an unaudited consolidated net loss of US$56.5 million for the corresponding period in 2019.”
The update is based on a preliminary review of its unaudited accounts, it added.
Genting HK operates three cruise lines – Dream Cruises, Crystal Cruises and Star Cruises – as well as a shipbuilding operation at MV Werften shipyards in Germany. It is also a joint venture partner in Philippines IR Resorts World Manila and owns Zouk nightclub in Singapore.
The company recently listed a series of cost cutting measures aimed at reducing the impact of COVID-19, namely a reduction in staff, salary reductions and the implementation of no pay leave for employees; suspending all capital expenditures; delaying delivery of new cruise ships Crystal Endeavor and Global Dream for 12 months; and laying up most of its current fleet.
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