Eden Leisure Group Limited, one of Malta’s foremost companies operating in hospitality and entertainment – sectors which have borne most of the brunt from the COVID-19 pandemic – is expected to register a revenue decrease of 68 per cent, in 2020, when compared to last year.

According to the firms’ Financial Analysis Summary, published through the Malta Stock Exchange (MSE) portal today, this year’s revenue is projected to be down by €30.7 million, 53 per cent of which is expected to be generated by its hospitality businesses, with the remaining expected from its entertainment and leisure segment, as well as its other operations.

Eden Leisure Group Limited is the parent company for subsidiaries managing the Eden Cinemas, Eden Car Park, Bay Radio and Cynergi Health & Fitness Club, as well as the Eden Superbowl, InterContinental Malta, Holiday Inn Express and the InterContinental Arena & Conference Centre. The Group also owns Eden Esports which provides online and offline electronic sports, organising and promoting events, leagues and tournaments. 

The total assets of the Eden Group, as of 31st December 2019, amounted to €199.3 million. With effect from 1 January 2019, the brands ‘Cynergi’ and ‘Bay’ were divested to a newly formed commonly controlled company, EIP Limited, for a value of €8.6 million. 

This year’s dramatic drop in revenue comes in the wake of pandemic restrictions, according to the Summary 

“FY2020 was expected to be another year of growth in both hospitality and entertainment sectors. However, the onset of COVID-19 has had a very negative effect on business the world over. January was a positive month for both sectors, however by February, the hotels started to see significant cancellations in confirmed business. March was the negative turning point for all the Group’s business operations as Government announced the complete shutdown of restaurants, gyms and other entertainment and leisure outlets, and the closure of the Malta International Airport,” it specified.

As a result, revenue in 2020 is projected to amount to €14.3 million, and the Group is projected to incur a loss after tax of €4.4 million compared to a profit of €12.7 million in FY2019. “The loss for the year takes into account the decline in business activities, and the cost cutting exercise undertaken by management as well as Government’s support through the wage subsidy scheme until September 2020,” the Summary read.