Genting Hong Kong Inc., the Hong Kong-listed operator of casino cruise ships and shipyards and an investor in Philippine Resorts World Manila Casino Resort, warned in a filing on Monday that first-half losses would be "significantly higher" compared to the same period last year, as COVID-19 halted most operations within the latest reporting period.
The group's loss in the first half of 2019 was US$55.2 million.
Genting Hong Kong's unaudited consolidated net loss is expected to rise in the six months to June 30 this year due to "seriously limited operations and revenue generation of its entertainment and leisure businesses," including suspension of operations across the group cruise business (i.e., Dream Cruise, Crystal Cruise and Star Cruise), suspension of ship operations at the German MV Berften shipyard, and Singapore Resort World Manila and Zuke nightclubs.
On July 26, outside the first-half reporting period, the group said the Dream Cruise brand was ready to resume cruise services for the Taiwanese market.
On Friday, the Philippine government said Metro Manila's general community quarantine, which targets COVID-19 response measures, would remain in place until Aug. 15. But on Monday, authorities said Metro Manila was returning to stricter protocols known as "modified and enhanced community quarantine" as COVID-19 cases rise in the capital.
Casino complexes in the Metro Manila area, including Resort World Manila, City of Dreams Manila, Okada Manila, Solaire Resort and Casino, have been closed since mid-March due to the pandemic.
In a recent filing with the Hong Kong Stock Exchange, Genting Hong Kong noted that it had taken a number of "capital raising measures to deal with cost savings, cash savings and loss of operating revenue."
In March, the company announced that its top management had "100% waived commission and compensation" from February through the end of the year, and that it would cut jobs amid business disruptions caused by the pandemic.
In an update on Monday, Genting Hong Kong said it had cut "ground operating costs" in phases, including a reduction in staff numbers, a reduction in salaries for retained employees and implementation of "unpaid leave".
It also reduced "ship operating costs" by "landing" most of the group's vessels, except the Explorer Dream, which launched a "Taiwan domestic voyage" on July 26. Other exceptions were the Superstar Aquarium and Superstar Gemini, which were "leased to the Singaporean government." Singapore authorities are using the vessels to house migrant workers who have recovered from COVID-19, according to media reports.
BY: 슬롯머신
