Genting Malaysia said it is more cautious on the near-term prospects of the leisure and hospitality industry, due to the impact of the coronavirus and protracted geopolitical tensions.
The company made the comments in its 19Q4 results filing, which was published on Thursday.
“The expansion of the global economy is expected to modestly improve in 2020 as market sentiments gradually recover following potentially lower global trade tensions. However, downside risks are more pronounced due to heightened global concerns over the impact of the Coronavirus Disease 2019 (COVID-19) on the global economy. Additionally, concerns over protracted geopolitical tensions and policy uncertainties remain,” said Genting Malaysia.
In the fourth quarter of 2019, the group registered lower revenue and adjusted EBITDA, which fell by 6 and 29 percent, respectively.
Genting Malaysia said this was due to lower hold percentage in the mid to premium players segment as well as a decrease in volume of business in the mass market segment. Adjusted EBITDA was also impacted by higher gaming duties imposed.
Looking ahead, Getting said it remains focused on the timely completion of its outdoor theme park in Malaysia, which is approaching its final stages.
In the UK, the group is working to deliver sustainable performance by focusing on
strengthening its position in the mass market segment. Additionally, Genting said it will review its operations on an ongoing basis to identify streamlining opportunities to improve overall business efficiency.
In the US, Genting is focused on strengthening its position in the New York State gaming market amid an increasingly competitive landscape.
The ongoing expansion project at RWNYC is progressing well and the Group is currently working towards the completion of a new 400-room hotel, which is expected to open in the second half of 2020.