Genting Hong Kong has issued a warning over “significantly higher” net loss for the first half of the year, compared to 2019, when the group lost $55.2 million.
The group stressed the impact COVID-19 pandemic has had on the industry and the suspension of operations. In a filing to Hong Kong stock exchange, Genting stated it had taken “cost reduction, cash conservation, and capital-raising measures to deal with the resultant loss of revenues from its operations.”
The cost-cutting measures include reduction of staff and salary (for those retained), as well as the implementation of no-pay leave.
Chairman and CEO Tan Sri Lim Kok Thay said the business was suspended for the group’s cruises (Dream Cruises, Crystal Cruises and Star Cruises) and shipbuilding operations in MV Werften’s shipyards in Germany, while the group’s “entertainment and leisure businesses” of Resorts World Manila and Zouk have “severely restricted operations and revenue generation.”
The CEO added: “It is expected that the COVID-19 pandemic will continue to affect the group’s businesses, as the spread and development of the virus has created significant uncertainty over when authorities in the relevant cruising markets will allow resumption of the cruise travel.”
The group is looking for additional sources of finance to increase liquidity, namely seeking Germany’s Economic Stabilisation Fund to finance the resumption of work in the German shipyard. Other sources will be sought out to support the cruise businesses.