Global casino operator Genting Malaysia Bhd swung to a MYR457.90-million (US$102.5-million) loss in the fourth quarter, it said in a Thursday filing to Bursa Malaysia.
That compared to a MYR569.16-million profit in the third quarter, and a MYR 239.64-million profit in the fourth quarter 2023.
For the whole of 2024, the business had a profit of nearly MYR251.28 million, though that was down 42.3 percent year-on-year. Full-year revenue was MYR10.91 billion, up 7.1 percent year-on-year.
The company has a Malaysian casino monopoly at Resorts World Genting, near that country’s capital Kuala Lumpur, and also runs casinos in the United Kingdom and Egypt, and the United States and the Bahamas, with additional investment in a U.S. associate, Empire Resorts Inc.
In a separate filing on Thursday, the Genting Malaysia parent, Genting Bhd, said Lim Kok Thay, who had served as chairman and chief executive of Genting Bhd since 2007, was stepping down from the CEO role, and would be redesignated as executive chairman.
Maybank Investment Bank Bhd said in a Friday note on the Genting Malaysia results: “Fourth-quarter core net loss of MYR61.7 million brought full-year 2024 core net profit to MYR518.9 million, which accounted for only 76 percent of our full-year estimate.”
Analyst Samuel Yin Shao Yang added: “The earnings shortfall was due to Genting UK and Resorts World New York City, where higher staff cost caused their fourth-quarter EBITDA [earnings before interest, taxation, depreciation and amortisation] to fall 47 percent quarter-on-quarter and 39 percent quarter-on-quarter.”
Genting Malaysia declared in a separate announcement a final dividend of MYR0.04, payable on April 10.
Maybank stated that the dividend “brought full year 2024 dividend per share to MYR0.10 which accounted for only 67 percent of our full-year estimate”.
Mr Yin added: “Genting Malaysia explained that it is conserving cash to potentially expand Resorts World New York City for US$5.0 billion and bid for a Thai casino licence for an amount greater than or equal to US$3.0 billion.”
The analyst further noted: “Genting Malaysia may bid for a Thai casino licence separately from sister company, Genting Singapore [Ltd],” referring to the operator of the Resorts World Sentosa casino complex in Singapore.
Group-wide in the fourth quarter, Genting Malaysia’s revenue was flat year-on-year, at nearly MYR2.73 billion. Fourth-quarter revenue was also flat measured quarter-on-quarter.
Global adjusted EBITDA in the three months to December 31 was MYR180.6 million, down 78.6 percent year-on-year. Judged quarter-on-quarter, such EBITDA slipped 86.2 percent.
Fourth-quarter revenue in the Malaysia leisure and hospitality segment, including casino operations there, was nearly MYR1.78 billion, down 1.1 percent year-on-year.
Such quarterly revenue in the U.K. and Egypt was MYR446.4 million, up 3.9 percent year-on-year.
For the U.S. and the Bahamas, fourth-quarter revenue from leisure and hospitality was MYR461.7 million, down 0.9 percent year-on-year.
Maybank stated in its note that the Malaysian casino resort’s fourth-quarter EBITDA margin had “hit a post-Covid low of 28 percent… on higher operating expenses.”
For full-year 2025, Genting Malaysia was guiding it expected EBITDA margins at Resorts World Genting to be 30 to 31 percent, versus 30 to 33 percent previously.
It was also giving guidance it expected lower Genting U.K. and U.S. EBITDA margins of circa 16 percent and circa 27 percent respectively.
Maybank’s Mr Yin wrote: “Reflecting the above, we cut our full year 2025 and full year 2026 earnings estimates by 25 percent and 26 percent; and dividend estimates by 33 percent and 33 percent.”
Though he added: “Much to our positive surprise, Genting Malaysia does not expect to inject more equity into loss making associate, Empire Resorts.
“Going forward, Resorts World Genting has plans to reopen more mass gaming floor area,” following shuttering of some space last year.
“Thus, there could be upside to our earnings estimates,” added the Maybank analyst.
