Genting Hong Kong expects to record an operating loss in 2020 due to the global Covid-19 outbreak.
On March 29, the operator released its FY19 financial results, which reflected a loss of US$96.2 million for the period, compared to US$141.5 million in 2018. That was before the coronavirus, which has caused the firm to suspend most of its cruise operations and shut down its three shipyards in Germany.
According to Inside Asian Gaming, the company has cut the wages of managers, imposed a company-wide hiring freeze and accepted an offer from its executive team to waive their 2020 salaries.
“Genting Dream will recommence operation when the Singapore authority reopens its cruise terminal,” Genting Hong Kong said in a statement accompanying the financial results. “In the interim, the company will continue to evaluate alternative deployment plans for World Dream while the Star Cruises fleet has suspended operations until the situation in the region improves.
“With the rapid transmission of Covid-19, the group anticipates an operating loss in 2020, despite efforts and remedial measures taken to contain costs. The magnitude of the impact on the Group’s performance is difficult to quantify as the Covid-19 outbreak continues to spread globally. The group will continue to monitor its business closely during this temporary disruption and adjust its plans in the best interest of the group.”
