KUALA LUMPUR (Aug 27): Genting Bhd slipped deeper into the red in the second quarter ended June 30, 2021 (2QFY21) with a net loss of RM563.53 million, from RM331.76 million in the immediate preceding quarter, dragged by higher impairment losses arising mainly from the Kasuri block operation in Indonesia and higher pre-opening expenses incurred by Resorts World Las Vegas.

The group’s revenue rose 30.34% to RM2.94 billion from RM2.25 billion in 1QFY21.

However, on a year-on-year basis, Genting’s net loss narrowed 28.31% from RM786.05 million in 2QFY20, while revenue ballooned 165.06% from RM1.11 billion, mainly on the back of higher contributions from its leisure and hospitality segment.

The group said revenue from its leisure and hospitality segment jumped more than 10-fold to RM1.69 billion from RM160.3 million in 2QFY20, as its businesses were allowed to operate more in the quarter.

“Resort World Genting (RWG) has been temporarily closed since June 1, 2021 compared with the temporary closure of operations from mid-March to mid-June 2020.

“Hence, the overall volume of business from gaming and non-gaming segments is comparatively higher in 2QFY21 as a result of the easing of operational and travel restrictions.

“The higher revenue from the leisure and hospitality segments in UK and Egypt in 2QFY21 was mainly due to the re-opening of Genting Malaysia Bhd (GenM) group’s land-based casinos in the UK since mid-May 2021, compared with a temporary suspension of the land-based casino operations throughout 2QFY20,” Genting said.

It added that its Singapore and US and Bahamas divisions of its leisure and hospitality segment also reported similar improvement in contributions in the quarter when compared to 2QFY20.

As for its plantation segment, revenue increased to RM762.8 million, up 40.38% from RM543.4 million a year  ago, due to higher palm products prices and higher oil palm production spurred by the growth in Indonesia from increased harvesting areas and higher yields.

For the first half, Genting’s net loss narrowed to RM895.29 million from RM918.37 million in the same period last year.

Six-month revenue fell to RM5.19 billion from RM5.22 billion in the previous January-June period.

On prospects, Genting said global economic recovery is expected to continue, albeit at an uneven pace across advanced economies and emerging markets.

“However, challenges to global growth persist given ongoing concerns surrounding the evolving Covid-19 situation worldwide and potential risks of heightened financial market volatility.

“In Malaysia, economic recovery is expected to be delayed by the earlier re-imposition of containment measures nationwide and increased spread of Covid-19.

“While international travel has shown early signs of revival, the recent Covid-19 developments will continue to pose uncertainties to the outlook for the
tourism, leisure and hospitality sectors. The regional gaming market is expected to remain challenging in the short-term,” it added.

Shares of Genting slipped two sen or 0.4% to close at RM4.93, valuing the group at RM19.11 billion.