Genting HK flags H1 loss, executives waive pay

Monday 16th of March 2020

Genting Hong Kong, a cruise ship operator, says it expects to post an operating loss in the first half despite cost-cutting measures, such as senior executives agreeing to forego their salaries until the end of the year.

At present, it says it can’t estimate the likely size of the losses due to the fast-evolving situation with the coronavirus outbreak.

The company has also asked managers to take a voluntary salary reduction of between 20 and 50 percent to save about US$15 million and says 90 percent have agreed.

Among other cost-saving measures to mitigate the impact of plunging revenue after the coronavirus outbreak, Genting said it’s reducing onboard crew by not renewing expiring contracts, reducing the short headcount by not filling vacancies or departures and reducing all expenses.

“The company expresses sincere gratitude and appreciation to all its employees, officers and crew for their resilience and hard work for battening down the hatches in these stormy seas and in particular, those involved in ensuring the guests onboard World Dream disembarked safely without a single infection incident in early February 2020.”

On a more positive note, it said that there are signs that China is starting to return to work, with 90 percent of Starbucks stores reported to have reopened as well as parts of Shanghai Disney.

For 2019, the company expects its net loss to have narrowed to a range of $140 million to $170 million from $224 million the year earlier.