Genting Hong Kong, the cruise ship, shipbuilding and casino group that is listed in Hong Kong, says t will report a$60 million to $75 million loss in its first half 2016 results due to absence of one off sale gains and higher expenses in its cruise operations
“The board of directors of the Company (the “Board”) wishes to inform the shareholders, investors and potential investors of the Company that, based on the preliminary assessment of the latest unaudited financial information, excluding the share of results of Travellers, the Group is expected to record a consolidated net loss in the range of US$60 million to Us$75 million for the six months ended 30 June 2016 as compared with a consolidated net profit of US$2.1 billion, excluding the share of results of Travellers, for the six months ended 30 June 2015,” the company said in a statement
The company added the expected decline in the consolidated net results of the Group is mainly attributable to firstly, to the absence of a one-off accounting gain of $1,567.4 million recognised arising from the reclassification of the Group’s investment in Norwegian Cruise Line Holdings Ltd (“NCLH”) from “Interest in associates” to “Available-for-sale investments” in May 2015.
In addition, last year the company booked a total gain of $599.6 million arising from the disposals of certain stakes in NCLH in the six months ended 30 June 2015.
Finally, one-time start-up and marketing costs for the launch of new Dream and Crystal cruise brands and products in 2016; and higher overall operating and selling, general and administrative expenses including depreciation and amortisation as a direct result of the integration of the Group's recently acquired businesses.