Genting Malaysia reported a 6% decline in group-wide revenue to MYR2.60 billion (US$613 million) in the three months to 31 March 2025, including a 7% drop in revenue at flagship Malaysian property Resorts World Genting (RWG) to MYR1.62 billion (US$382 million) due to challenges in the premium player segments.
Adjusted EBITDA grew by 13% year-on-year to MYR737.2 million (US$173 million) on foreign exchange gains, although fell by 15% when such gains were excluded and taking into account only its global resort operations.
At RWG, revenue was down 9% quarter-on-quarter but Adjusted EBITDA of MYR, although down 11% versus 1Q24, was up 6% sequentially due to a 7 percentage point improvement in margins to 32%. The company told analysts during an earnings call that VIP gross gaming revenues (GGR) had fallen 18% year-on-year due to the timing of Chinese New Year, however mass market GGR was up 7% year-on-year and 4% quarter-on-quarter due to the reopening of some mass gaming areas.
Visitation to RWG was down 2% year-on-year and 7% quarter-on-quarter to 5.7 million in 1Q25.
Elsewhere, the group’s UK and Egypt operations suffered a 7% year-on-year decline in revenue to MYR413.4 million (US$97.4 million) and a 25% fall in Adjusted EBITDA to MYR55.5 million (US$1.3 million), while the US and Bahamas saw revenue fall 3% to US$501.3 million (US$118 million) and Adjusted EBITDA by 22% to MYR119.0 million (US$28.0 million).
Profit for the period grew by 42% to MYR52.0 million (US$12.3 million) although net income after tax of MYR47 million (US$11.1 million) was down 81% year-on-year due to continued losses from its US associate Empire Resorts, plus high depreciation and finance costs.
In a note, Maybank Investment Bank’s Samuel Yin Shao Yang said he expects 2Q25 to be “seasonally slow” but 3Q25 and 4Q25 to be seasonally stronger on higher spending.
He also noted that the group will submit its bid for a full casino license in New York City on 27 June, with the result seen as a key catalyst for long-term earnings.
In a separate note, Nomura analysts observed that Genting Malaysia’s earnings continue to be low post-COVID due to a structurally high-cost base after undertaking substantial capex that has not yet yielded desired returns.
“We think the weak share price is fundamentally a reflection of the weak net income line (EBITDA is already above pre-COVID levels whereas net income is not) and expect that the stock might continue to de-rate until there is a clear earnings turnaround,” said analysts Tushar Mohata and Alpa Aggarwal.
“Genting Malaysia recently also announced another related-party transaction to take full control of Empire Resorts which will likely result in higher share of losses and weaker balance sheet structure post consolidation.”
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