Fitch Forecasts Soft 2026 Earnings for Resorts World Genting

Genting Malaysia Bhd is likely to continue experiencing poor performance from its Malaysia-based gaming and entertainment business for the remainder of 2026, says Fitch Ratings. The global casino operator faces challenges from high airfares and macroeconomic uncertainty, as noted in a Monday rating action commentary.

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Genting Malaysia has Malaysia’s only casino resort, Resort World Genting, located close to the capital city of Malaysia, Kuala Lumpur. Besides, Genting Malaysia conducts gaming business in the United Kingdom, Egypt, the United States, and the Bahamas.

The revenue of the group’s Malaysian leisure and hospitality division, which includes Resorts World Genting, totaled MYR3.43 billion (US$847.26 million) in the first half of 2026. This is a 1% rise year-over-year, according to the financial results of Genting Malaysia’s second quarter of 2026.

Fitch remarked that revenue increased marginally by 1% year-on-year in the first half of 2026 due to soft VIP gaming volume during the period. The ratings agency expects the performance of Genting Malaysia’s domestic operations to improve by 2% for the full-year 2026, as revenue continues to recover from a weak first quarter.

Challenges for International and Domestic Traffic

However, Fitch expects poor performance from the company’s Malaysian-based business for the rest of the year. The revenue from foreign tourists as well as domestic tourists could continue facing difficulties owing to expensive air fares.

The ratings agency’s commentary accompanied its Monday decision to downgrade Genting Malaysia’s long-term issuer default rating, or IDR, as well as the rating on the firm’s guaranteed US$1-billion senior unsecured notes due 2031, to BBB-, from BBB, with a stable outlook.

The step followed Fitch’s downgrade of the long-term IDR of Genting Malaysia’s 73.8% parent, Genting Bhd, to BBB-. The rating agency said Genting Malaysia’s rating reflected its standalone credit profile, which is at the same level as Genting Bhd’s rating. The institution considered the parent company’s incentive to support Genting Malaysia to be high.

Fitch has also affirmed the long-term IDR of Genting Malaysia’s wholly-owned subsidiary, Genting New York LLC, at BBB-, with a stable outlook.

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Financial Performance in Focus

The 1% revenue growth in the first half of 2026 underscores the challenges faced by Genting Malaysia in its domestic operation in Malaysia. Whereas the company has exhibited resiliency in other regions, especially in the US, its domestic division still faces a challenge of lower VIP gaming business.

According to Fitch, the path towards recovery in Resorts World Genting will be a slow one. The analysts anticipate a 2% rise in revenues from the domestic business, but the forecast is based on the general economic and tourism situation.

The high cost of flights poses a threat to tourists from outside Malaysia. Besides, the uncertainties in the economy affect not only tourism spending but also local gambling activity. It makes things difficult for the gambling establishment despite being the only legal gambling facility in Malaysia.

Outlook for Genting Malaysia

The credit rating reduction for Genting Malaysia shows the conservative approach Fitch applies regarding the company’s future expectations. Since profits are not going to improve until 2026, the operator is to experience hard times concerning growth in its native country.

The stable outlook on the BBB- rating suggests that no further reductions are to be made in the near future. However, Fitch will still keep track of the performance of the company amid challenging conditions, especially how the international business of the company will help compensate domestic failures.

The key aspect will be cost management and liquidity of the company amid waiting for travel and gaming demands to increase. The parent company’s strong incentive to support Genting Malaysia provides some reassurance, but the path to stronger earnings will likely depend on improvements in the broader economic environment.

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Source: GGR Asia