GHY Culture and Media said on Tuesday (Feb 27) that it is expecting a loss of 94 million yuan (S$17.6 million) arising from two cancelled football games with Al Nassr Football Club (FC).
The loss estimation was based on the fee paid to Al Nassr Club Company and other related costs for the financial year ending Dec 31, 2024, arising from the cancellation of the tournament, assuming no replacement tournament is held.
Al Nassr FC was scheduled to play a friendly match with Shanghai Shenhua FC on Jan 24, and another with Zhejiang FC on Jan 28, at the Shenzhen Universiade Sports Centre.
Both games have been postponed following an injury sustained by Cristiano Ronaldo, forward and captain of Al Nassr FC.
It was previously reported that GHY had paid a US$10 million collaboration fee for Al Nassr FC to play in China.
The tournament is now envisaged to be postponed to the second half of 2024.
The Singapore-listed entertainment group said it will “make its best efforts to mitigate the loss through discussions with Al Nassr”. The two parties are seeking agreements on how certain fees paid and costs incurred by GHY may be carried forward to offset the fees required for the postponed game.
In a previous statement, GHY said it did not expect the collaboration to have any effect on its net tangible assets or earnings per share for the financial year ending Dec 31, 2023.
Shares of GHY closed at S$0.325 on Tuesday, up S$0.01 or 3.2 per cent, before the announcement.
