Genting Singapore posts S$163.3m loss in Q2 due to Covid-19 closure

IN ITS worst quarterly showing since the opening of its Singapore integrated resorts (IRs) a decade ago, Genting Singapore logged a S$163.3 million net loss for Q2 FY2020 ended June. Its Q2 numbers reverse a S$168.4 million net profit from a year ago and a S$46.6 million net profit from Q1 this year.

Revenue for the quarter plunged 94 per cent year on year to S$41.3 million, Genting disclosed in a quarterly business review on Thursday evening. The firm had suspended all guest offerings at Resorts World Sentosa during the circuit-breaker period from April 6 to end-June.

Gaming revenue for Q2 stood at just S$6.5 million, compared to S$441.1 million from a year ago. Non-gaming revenue similarly plunged to S$16.3 million, down 92 per cent from the same period last year.

The impact was partly softened by other revenue, from the investment business and hospitality and support services, surging to S$18.5 million, from S$604,000 a year ago.

Overall, Genting saw a adjusted LBITDA (loss before interest, taxes, depreciation and amortisation) of S$84.9 million, which was further weighed down by S$46.8 million in net exchange losses relating to investments, share-based payment and other expenses.

In contrast to the Q2 numbers, Genting's Q1 results, which the company voluntarily disclosed in its filing, were more robust. The company made a S$46.6 million net profit, on the back of S$406.9 million in revenue. Gaming revenue accounted for S$267.9 million of the topline, while non-gaming revenue stood at S$138.4 million.

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Genting's adjusted Ebitda for Q1 stood at S$151.6 million. It also recorded a smaller S$6.5 million in net exchange losses relating to investment, share-based payment and other expenses.

Genting said that Covid-19 has been damaging. "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," it said.

The firm is "pessimistic" on its overall financial performance for the year, given continuing restrictions on travel. More details on its H1 results will be released in its full financial statement.

Shares of Genting closed flat at S$0.71 on Thursday.