Genting’s cruise operator in profits warning

A profits warning has been issued by Genting Hong Kong, the cruise ship operating subsidiary of the Genting Group.

The casino gambling operator has stated that it is expecting to record an operating loss of not less than US$600m and a consolidated net loss of not less than $1.5bn for 2020.

In the comparable year the company showed an operating loss of $96m and consolidated net loss of $159m.

The company said that the loss is attributable to the suspension of fleet-wide operations across the group’s cruise business for Dream Cruises, Crystal Cruises and Star Cruises and the suspension of ship-building operations in Germany between March of last year and October.

“This led to impairment losses being recorded on certain intangible assets, property, plant and equipment and other assets and loss on disposal of interest in certain subsidiaries that owned non-core assets.”

Genting Hong Kong also owns Resorts World in Manila. Covid-19 caused the group to cancel many sailings and suspend nearly all of its cruise operations temporarily since February of last year.