Genting Singapore said its executives and senior management have agreed to pay cuts to help to offset the impact of the coronavirus on its earnings, which it warns is likely to be significant.
The operator of Resorts World Sentosa said it has seen a major drop in visitor attendance and revenue across all its facilities.
“While the extent of the impact on the group’s financial performance and operations for the full year 2020 cannot be determined at this stage as the duration and extent of the spread of COVID-19 is uncertain, the board wishes to issue a profit guidance note that the group expects that its financial results will be significantly and adversely impacted for the first quarter ending 31 March 2020 and the half year ending 30 June 2020.”
It said it will reduce non-executive director fees by 15 percent in the first quarter, while its executive directors will take an 18 percent reduction in base salary. There will also be a cut of between 9 percent and 18 percent for all managerial staff and it’s encouraging employees to take unpaid leave, or annual leave.
Meanwhile, sister company Genting Malaysia has joined the tide of casino closures across the globe due to the coronavirus, shutting the doors at Resorts World Genting from March 18 to March 31.
As a result of the closure,, analysts at Maybank Investment Bank have cut their full-year earnings for the group by 33 percent. However, it leaves its long-term estimates unchanged.
“Investors who BUY now will be rewarded with eye watering high dividend yields of 10 percent p.a. while waiting for operations to recover,” it said in a note.