KUALA LUMPUR: Genting Bhd posted a wider net loss of RM344.55 million in the third quarter (Q3) ended September 30, 2021, from a net loss of RM130.75 million incurred in the same period previously.
In an exchange filing yesterday, the company said this was mainly dragged by the series of enhanced safe management measures introduced to curb the surge of new community cases, affecting most of the group’s leisure and hospitality segments.
Its Q3 revenue increased 6.1 per cent to RM3.50 billion from RM3.30 billion on the back of higher contribution from the leisure and hospitality businesses in the United Kingdom, United States, Egypt and Bahamas, plantation and oil and gas divisions.
For the nine months, Genting’s net loss widened to RM1.24 billion from a net loss of RM1.05 billion, while revenue grew 2.1 per cent to RM8.70 billion from RM8.52 billion.
Genting’s financial performance for the year ending December 31, 2021 (FY21) may be impacted given uncertainties surrounding the evolution of Covid-19, ongoing supply chain disruptions, escalating energy prices and inflationary risk.
However, it said the recovery of the global economy is expected to continue, supported by sustained progress in vaccination programmes worldwide and the relaxation of containment measures.
“The recovery momentum of the Malaysian economy is expected to improve in line with the rally of the global economy and continued implementation of domestic economic and fiscal stimulus measures.”
The tourism industry is expected to continue recovering with the increase in vaccination rates and the easing of border crossing restrictions worldwide.
“The introduction of the 12th Malaysia Plan, with the tourism industry as one of the key focus areas, will augur well for Genting group as a player in the leisure and hospitality sector in Malaysia and the region.”
As for the regional gaming market, Genting said the introduction of vaccinated travel lanes between certain countries would likely provide a positive catalyst for industry players.
“Against this backdrop, Genting group is cautiously optimistic on the near-term prospects of the leisure and hospitality industry.”
Source: New Straits Times
