New funds follow a similar pre pandemic cash injection of US$40 million in March
Genting Malaysia is injecting US$150 million in cash into its loss-making US unit Empire Resorts, which had its gaming facilities temporarily closed in March as result of the Covid-19 pandemic, and just reopened in New York Catskills. This follows a similar cash injection of US$40 million into the unit in March.
Empire Resorts owns and operates Resorts World Catskills, a casino resort which is located in Sullivan County, New York, approximately 90 miles from New York City, as well as the Monticello Raceway, a horse racing facility located in Monticello, New York. On September 9, Resorts World Catskills was permitted to reopen 30 of its 150 casino tables.
In Genting Malaysia’s Review of Performance report for Financial period for the six months ended 30 June 2020, the Group reported a 61% decline in total revenue to RM 2,070.8 million (US$500 million) and adjusted LBITDA of RM130.8 million. After taking into consideration impairment losses, finance costs, depreciation and amortisation, the Group registered LBT and net loss of RM1,491.1 million (US$360 million) and RM1,377.1 million respectively.
Similarly, the Group’s operations for 1h 2020 in the US and Bahamas registered lower revenue by 61% to RM289.1 million (US$70 million) and adjusted LBITDA of RM161.7 million. This was mainly attributable to the decline in volume of business following the temporary closure of the Group’s resorts in the US and Bahamas since mid-March 2020.
The Group reported that will continue to proactively manage its operating cost structure as it navigates through the dynamic situation in the US and Bahamas. In the meantime, development work for the expansion project at RWNYC is currently underway and the Group is working towards the completion of the first phase of the new 400-room hotel, which is expected to open by the first quarter of 2021.
In the US, Genting Malaysia’s RWNYC, the first and only video gaming machine facility in New York City, and RWC, a premium destination resort situated within the scenic Catskills Mountains in the State of New York, collectively offer the ultimate gaming, hospitality and entertainment experience, featuring a live table games casino, over 400 rooms across two hotels, video gaming machines, diverse bar and restaurant choices, exciting shows and memorable events. Additionally, the Group embarked on an expansion project at RWNYC to expand its facilities and attractions, including the development of a new 400-room hotel.
