Genting Malaysia says it is preparing to resume operations at its flagship Malaysian casino resort, Resorts World Genting, but has warned the timeline for completion and launch of its new outdoor theme park has been delayed as a result of the COVID-19 pandemic.
The update was included in Genting Malaysia’s first quarter results release on Thursday, which saw the group fall to a loss of MYR453.9 million (US$104.4 million) – down from a profit of MYR253.1 million (US$58.2 million) in 1Q19 – on depressed revenues across all business segments.
While the Malaysian government eased its Movement Control Order (MCO) from 4 May, RWG and associated hotels Resorts World Awana, Resorts World Kijal and Resorts World Langkawi have remained closed.
“Nevertheless, the Group is currently preparing for the resumption of operations and is focused on leveraging domestic demand to drive visitation and revenue,” it said.
“As development works on the outdoor theme park (OTP) were affected by the MCO, the Group is working on a revised timeline for the completion and opening of the OTP.”
Originally due to open in 3Q20, the OTP has been cited by analysts as a key driver for pent-up demand in Genting Malaysia’s local tourist market.
In the meantime, the company reported a 29% decline in group-wide revenue in 1Q20 to MYR1.96 billion (US$451.0 million), with RWG suffering a 36% fall in revenue to MYR1.23 billion (US$283.0 million) and 40% drop in Adjusted EBITDA to MYR331.2 million (US$76.2 million). The decline in revenue was also attributable to lower hold percentage in the mid to premium player segment, Genting Malaysia added.
Revenue at its UK and Egypt properties fell 11% to MYR371.2 million (US$85.4 million) while in the US and Bahamas revenue fell 13% to MYR320.7 million (US$73.8 million).