Maybank Trims 2026 Earnings Outlook For Genting Malaysia By 28% On Weaker GGR, Sees Q2 Core Net Loss Risk

Maybank Investment Bank Bhd cut its full-year 2026 earnings per share outlook for Genting Malaysia Bhd by 28%, on weaker gross gaming revenues from Resorts World Genting and Genting Casinos United Kingdom. Maybank also highlighted that there was a risk of core net loss in the second quarter.

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Forecast Trim And 2Q Outlook

In a memo released on Wednesday, analyst Samuel Yin Shao Yang said there is a risk Genting Malaysia will report a core net loss for the 3 months to June 30, 2026. Maybank noted that the second quarter is typically a seasonally weaker period following the Chinese New Year, but said channel checks suggest this year’s quarter will be unusually soft.

The bank’s revised forecast reflects that view, with a deeper cut to 2026 earnings than to later years. Maybank said it is trimming its earnings forecasts for 2027 and 2028 by only 4%, as it believes the current headwinds could be temporary rather than structural.

Factors Behind Weaker GGR

Yin outlined several factors weighing on 2Q performance. He said higher diesel prices driven by the conflict involving the United States and Iran, which has affected fuel supplies passing through the Strait of Hormuz, have hurt both VIP and mass-market gaming at Resorts World Genting.

He added that the same conflict may have discouraged Middle Eastern visitors and gamblers who would normally transit the region from patronising Genting’s London VIP clubs in the United Kingdom. That has added pressure on Genting Casinos UK’s results.

The analyst also pointed to the FIFA World Cup, held from June 11 to July 19, 2026, as another drag on spending. He said the tournament diverted gaming spend away from Resorts World Genting and Genting’s UK properties, further weakening second-quarter numbers.

Taken together, the fuel-related impact, softer VIP travel, and World Cup diversion have left Genting Malaysia’s core markets facing multiple short-term headwinds in the same reporting period.

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Longer-Term View Still Intact

While there is a sharper cut to the 2026 estimates, Maybank’s long-term position towards Genting Malaysia appears more consistent. The milder cuts of 4% in 2027 and 2028 are due to expectations of an eventual smoothing out of current disturbances.

The bank’s assessment suggests that once fuel prices normalise, travel advisories and patterns stabilise, and the World Cup effect passes, Genting’s core Malaysian and UK operations could move back toward more typical performance levels.

For now, however, the combination of these factors has led Maybank to flag the possibility of a core net loss in 2Q and to rebase its near-term expectations.

New York Operation Supports Growth

Yin also highlighted Genting Malaysia’s downstate New York operation, Resorts World New York City, as a key contributor to the group’s long-term growth. The property became a full-service casino earlier this year, adding table games alongside its existing machine offering.

Maybank said table games traction, lower slot machine tax rates, and expanding capacity at Resorts World New York City underpin Genting Malaysia’s future prospects. The upgraded status of the venue gives the group another revenue pillar outside Malaysia and the UK.

The bank’s memo indicates that while 2026 is shaping up as a more challenging year, particularly in the second quarter, Genting Malaysia’s diversified portfolio still offers growth avenues. The revised forecasts now reflect weaker near-term GGR in its traditional markets, balanced against a more positive outlook for its New York casino as its expansion progresses.

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Source: GGR Asia