SINGAPORE (July 31): Genting Hong Kong is expected to record a consolidated net loss in the range of US$200-US$220 million ($271-$299 million) for the six months ended June.
This is compared to a consolidated net loss of US$73.7 million, excluding the share of results of Travellers, for the six months ended June in 2016.
Factors that contributed to the loss included operating loss in Crystal Cruises due to a more competitive environment resulting from a 13.7% increase in new luxury cruise ship capacity in the industry and higher marketing costs and startup costs of new Crystal river ships and AirCruises operations.
Another reason was full half-year startup losses in 2017 versus two months in 2016 in its German new building shipyards as they gear up for steel cutting for the Global Class and Endeavor Class ships in March 2018.
There was also additional depreciation and amortisation of new Genting Dream and shipyards and additional interest of new Genting Dream ship.
Despite the decline in its consolidated net results, Genting Hong Kong says performance of the underlying core Asian cruise business has improved in the 2Q17 compared to 1Q17. The group also remains positive on the underlying core Asian cruise business for 2H17.
Update: Shares in Genting Hong Kong closed at 29.5 US cents on Monday.