Genting Malaysia Bhd has delayed the opening of its outdoor theme park (OTP) at Resorts World Genting (RWG) by more than 12 months to Q4 2021. It was originally set to open in Q3 2020.
Genting Malaysia is working on a “revised timeline” for the completion and opening of the OTP at RWG. Construction works were affected by restrictions imposed by the government of Malaysia.
According to GGRAsia, the news comes via a note from Nomura Group, which cited guidance from management at Genting Malaysia Bhd.
“The big negative from the results announcement was the delay of the theme park opening date from third quarter 2020 to fourth quarter 2021 due to travel restrictions, weak demand and slow pace of works during COVID-19,” said Nomura Research analysts Tushar Mohata and Alpa Aggarwal.
Genting Malaysia operations suspended over COVID-19
Genting Malaysia’s resort operations were temporarily suspended from mid-March. It is “currently preparing for the resumption of operations”.
Genting Malaysia Bhd also reported a net loss attributable to shareholders of nearly MYR418 million (US$96 million) for Q1 2020.
It attributed the loss to a decline in overall business caused by COVID-19. Genting Malaysia Bhd reported a net profit of approximately MYR268.3 million in Q1 2019.
The group is implementing “aggressive cost control” measures, including reducing operational expenditure and cancelling or deferring non-essential capital expenditure.
Genting Malaysia net loss of $96m in Q1 2020
In April, Genting Malaysia said it couldn’t comment on the group’s prospects due to coronavirus, adding that it was “focused on the timely completion” of the theme park at RWG.
It was previously reported that Genting Malaysia’s outdoor theme park will incur more capital expenditure before it can be completed, with costs going above $700 million.
Last year, Genting Malaysia reached a settlement agreement with 21st Century Fox and the Walt Disney Company over the OTP, with the dispute now fully resolved.