Genting warns of US$200-220 mln net loss in H1

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Gaming, cruise ship and hospitality operator Genting Hong Kong Limited has announced a profit warning for its first half-year results, according to a filing with the Hong Kong Stock Exchange.
The group notes that it is ‘expected to record a consolidated net loss in the range of US$200 million to US$220 million (Mop1.61 billion to MOP1.77 billion),’ according to the filing.
The group notes that the 171-198 per cent year-on-year increase in loss for the period is largely attributable to a more competitive environment in the cruise ship sector, with ‘a 13.7 per cent increase in new luxury cruise ship capacity in the industry’, as well as ‘higher marketing costs and startup costs of new Crystal river ships and AirCruises operations’. The group recently announced it would launch its inaugural Crystal AirCruises flight during the Golden Week this year, replacing its initial plan for seven VIP air cruises set to take place between August 31 and October 13.
The group also notes ‘additional depreciation and amortisation of new Genting Dream [cruise ship] and shipyards’.
The group notes that ‘Despite the decline in its consolidated net results, the performance of the underlying core Asian cruise business has improved in the second quarter of 2017 compared to the first quarter of 2017, and the Group remains positive on the underlying core Asian cruise business for the second half of the year.’