Genting Malaysia Records Loss Due to High Finance Costs

Genting Malaysia Bhd announced a net loss of MYR25.2 million or US$6.4 million in its Q1 results ending March 2026 due to high finance costs and pre-operating costs of its upcoming resorts located in New York City, despite an overall rise in revenue in each segment of its business. 

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Revenue Rises But Profit Drops

The firm recorded total revenue of MYR2.87 billion or US$724.0 million in Q1 2026 compared to MYR2.60 billion during the same period last year, marking an increase in revenues of 10%. The increase in revenue was fueled by improved performances by its operations in Malaysia, United Kingdom, Egypt, the United States, and the Bahamas.

Pre-tax profit decreased by 77% to MYR43.1 million or US$10.9 million in Q1 2026, whereas adjusted EBITDA was lower by 13% at MYR644.7 million. Finance costs were reported to have grown 34% to MYR246.7 million. The reason behind the increased finance cost is borrowings associated with opening a full-scale commercial casino at RWNYC and consolidation of senior secured notes of Empire Resorts.

RWNYC Expansion Pressures Earnings

Genting Malaysia said its indirect wholly owned subsidiary, Genting New York LLC, drew down US$755 million, or MYR3.06 billion, from a new senior secured credit facility during the quarter. The funds were used to cover commercial casino license fees and capital expenditure for RWNYC.

The company also said pre-operating expenses connected to RWNYC’s transition into a commercial casino contributed to the weaker earnings performance. RWNYC officially launched live table games on 28 April 2026, becoming New York City’s first full-scale commercial casino.

In the United States and the Bahamas, leisure and hospitality revenue rose 39% year-on-year to MYR694.4 million, or US$175.4 million, supported by the consolidation of Empire Resorts. Nevertheless, the adjusted EBITDA of the segment declined 32% to MYR80.5 million, or US$20.3 million, partly due to increased operating and payroll expenses arising from the RWNYC integration.

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Regional Segments Show Mixed Trends

For Malaysia, the company recorded a 3% revenue rise to MYR1.67 billion, equivalent to US$421.4 million, mainly attributable to the gaming segment. The adjusted EBITDA decreased slightly by 1%, amounting to MYR512.1 million, or US$129.3 million, due to increased payroll expense and other expenses.

In addition, operations in the UK and Egypt generated a revenue increase of 11% to MYR460.7 million, or US$116.3 million. That increase was helped by contributions from the newly acquired Genting Casino Stratford. The company’s results showed that while the wider group continued to grow in revenue terms, costs linked to expansion remained a drag on profitability.

Near-Term Outlook Remains Cautious

Genting Malaysia said it remains cautious on the near-term outlook for the leisure and hospitality industry. The company pointed to geopolitical tensions in the Middle East and broader macroeconomic uncertainty as factors that could affect demand.

It added that cross-border tourism demand may come under pressure from weaker outbound travel trends and higher travel-related costs, creating a more difficult operating environment for regional gaming markets. Even so, the company maintained a positive long-term outlook as it continues to manage the transition at RWNYC and other parts of its portfolio.

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Source: Asia Gaming Brief