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Genting Singapore posts net loss of $163.3 mil in 2Q20, marks 'worst quarterly performance' since opening

Felicia Tan
Felicia Tan • 2 min read
Genting Singapore posts net loss of $163.3 mil in 2Q20, marks 'worst quarterly performance' since opening
The company will not be paying out an interim dividend. However, the board "recognises shareholders' interests" and "if necessary" will tap retained earnings to pay a final dividend.
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Due to the significant drop in visitor arrivals from February this year amid the Covid-19 pandemic, as well as the temporary closure of its casino and attractions during the circuit breaker period, Genting Singapore (GENS) suffered from a steep drop in its revenue across all segments.

For the 2Q20 ended June, GENS registered a loss after taxation of $163.3 million, compared to the profit of $168.4 million a year ago.

According to the group in its business update on August 6, the loss marks the worst quarterly performance since the opening of its Singapore Integrated Resorts.

For the quarter, the group’s total revenue plummeted 94% to $41.3 million from the $636.8 million a year ago.

The group’s Singapore Integrated Resorts (IR) segment registered a 99% drop to $6.5 million from the $441.1 million a year ago.

Its gaming segment plummeted 92% to $18.5 million from the $195.0 million a year ago.

See also: Cordlife posts net loss of $11.57 mil for 1QFY2024 due to refund fulfilment

Others, including its investment business along with other hospitality and support services, grew significantly to $18.5 million, from $604,000 a year ago.

In its results for the period, GENS marked a loss of $79.0 million for its Singapore IR segment, and a $5.9 million loss in its other businesses.

For the period, GENS marked losses before interest, taxes, depreciation, and amortisation (LBITDA) of $131.8 million.

See also: Changi Airport Group reports FY2024 earnings of $431 mil, 13.1 times higher y-o-y

The group says it remains “pessimistic” on its overall financial performance as global travel remains highly restrictive.

GENS partially reopened its doors on July 1 following the gradual reopening of the circuit breaker measures. However, upon its partial reopening, it axed an unconfirmed number of workers out of its total of 9,373 as at end of 2019, on July 16.

The company will not be paying out an interim dividend. This time last year, it paid 1.5 cents per share. However, the board "recognises shareholders' interests" and "if necessary" will tap the retained earnings to pay a final dividend.

Shares in GENS closed flat at 71 cents on August 6 prior to the announcement.

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