Genting Hong Kong announces $1.72bn loss in 2020

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Genting Hong Kong announces $1.72bn loss in 2020

Genting Hong Kong has published its unaudited financial results for 2020, after informing its board that the annual results will be delayed.

In the unaudited version, the operator showed it obtained revenue of just $366.8m (£265.1m) in 2020, which is down from $1.56bn in 2019.

Overall expenditure increased tremendously; net expenses, financial costs and share of profits/loss amounted to $1.12bn for 2020, while in 2019 this was just $60m.

Therefore, combining the significant change in expenses and revenue, the company lost $1.72bn last year, while in 2019 they still made a loss but of only $159m. Similarly, the adjusted EBITDA for 2019 was at a positive of $143m, but last year this was at a loss of $386m.

Genting now has a net debt of $3.14bn for last year. The company says it has been talking with its partners and feels the leaders in the Genting HK Group has been supportive.

It said: “The group acknowledges the invaluable continued support of our lenders and creditors and appreciates the contributions of the directors and employees of the company amid these difficult times.”

The company has its eyes set on a more positive 2021, as government vaccinations are being administered and its properties are increasing their capacities. 

“With the support from the relevant authorities, the group has restarted sailings in a reduced capacity to ensure a safe return to service by offering domestic cruises,” added Genting.

“World Dream in Singapore and Explorer Dream in Taiwan are expected to receive higher capacity limits as there had been no Covid incidences for nearly nine months, since last year.

“The efficacy of mass vaccination in containment of Covid-19 will accelerate an early revival of the cruise industry in mid-2021. As international leisure travel is unlikely to return until 2022, we anticipate a surge in demand for domestic tourism.”