The Genting Group Malaysia Reports Losses of MYR726.2
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  • January 10, 2021
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    The Genting Group Malaysia reports losses after being hit hard by the coronavirus pandemic and the measures put in place to reduce its spread. Even into 2021, the Group as a whole is still feeling the impacts of many countries going into lockdown in early 2020. Despite the struggle, the Group in Malaysia and worldwide is attempting to make a recovery as the country restrictions slowly start to ease. 

    During the third quarter of 2020, the Genting Malaysia Berhad recorded a total revenue of MYR1.42 billion which is equivalent to 54% of the amount raised the year previously. The company as a whole suffered a net loss of MYR361.2 million in their resorts and MYR726.3 million in their casinos. This was largely as a result of the various Covid-19 restrictions that were put in place all over the world to mitigate its spread.

    Restrictions included the temporary shutdown of resorts and casinos. For example, the Malaysia Government put in place a Conditional Movement Control Order in several states which prevented many businesses from operating at a full capacity.

    Genting’s Global Casino Revenue Plummets

    From January 2020 to September 2020 the Genting Group’s global casino revenue across multiple continents total revenues amounted to MYR3.49. billion. This figure is 56% less than the total amount of revenue recorded in 2019. Despite this, the Group’s earnings before interest, taxation, depreciation and amortization were recorded as MYR179.9 million and at the end of the third quarter, the Group reported a net loss of MYR1.85 billion.

    In June 2020, Genting Malaysia Berhad began to resume activity under strict government protocols. They could operate with limited capacity and employees had to abide by health and safety regulations such as social distancing. As a result, revenue from the period of July to September was 66% compared to the previous year.

    The Genting Group has also recorded lower revenue in their properties outside Malaysia such as in the United States and Bahamas. The Group recorded lower revenue by a staggering 80%. The Group has also announced the permanent closure of three of their properties in Bristol, Margate and Torquay along with job reductions in their other properties around the world.

    The uncertainty of the pandemic remains, and the hospitality and tourism industry is continuing to take a hit. Despite the struggles of 2020, the Genting Group is planning to finish an outdoor theme park as planned. The park is due to open in mid-2021.

    Land-Based Casino Reporting Losses Globally While Online Gambling Increases

    Across the world, the global pandemic is responsible for land-based casino closures with major gambling cities such as Las Vegas and Macau also reporting losses. Once meccas for tourists and gamblers, these mega casino cities are now reporting huge losses. However, online gambling around the world online gambling is holding up most casino industry’s overall revenue as casino players begin to play at mobile casinos.

    In Singapore and Malaysia, websites such as Live22 are seeing a massive increase in players, while competitors using Playtech live dealer studios for live webcam online blackjack, roulette, baccarat, and poker games are seeing a remarkable increase in players logging onto online casinos such as Ace333 and Joker123 both of which use Playtech Live and Playtech slot titles.

    The question remains, should online gambling be made legal in Malaysia? It would surely give the government a solid tax base, and seeing as the country already allows land-based casinos to operate, there should not be any reasons why regulated online gambling could become an option as it has in places like the Philippines.

    Genting Group Malaysia Reports Losses Round Up:

          The Genting Group Malaysia has recorded 54% of total revenue lost in 3Q2020 compared to 3Q2019

          The company as a whole suffered a net loss of MYR361.2 million in their resorts and MYR726.3 million in their casinos

          Plans for an outdoor theme park at Resorts World Genting continue, expected completion by mid-2021

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