Global casino operator Genting Malaysia Bhd reported a MYR51.9-million (US$12.2-million) profit in the first quarter, up 41.5 percent from a year earlier, it said in a Thursday filing to Bursa Malaysia.
The firm recorded adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of MYR737.2 million for the first three months of 2025, 12.7-percent higher than in the prior-year period.
“This was primarily due to net unrealised foreign exchange translation gains of MYR50.4 million on the group’s U.S. dollar-denominated borrowings,” stated the company.
Genting Malaysia has a Malaysian casino monopoly at Resorts World Genting (pictured in a file photo), near that country’s capital Kuala Lumpur, and also runs casinos in the United Kingdom and Egypt, and the United States and the Bahamas.
Group-wide revenue in the first quarter stood at nearly MYR2.60 billion, down 6.1 percent from a year ago.
First-quarter revenue in the Malaysia leisure and hospitality segment, including the casino operation there, was just above MYR1.62 billion, a 7.2-percent decline year-on-year. Adjusted EBITDA in the Malaysian operation fell by 11.2 percent year-on-year, to MYR518.2 million.
Such decline in revenue and EBITDA at Resorts World Genting reflected “an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment,” stated the casino firm.
The decline in revenue at the complex “was also attributable to the timing of the festive season in first-quarter 2025,” as compared to a year ago, despite the number of visitors to the property being “similar to first-quarter 2024”.
Maybank Investment Bank Bhd said in a Friday note on the Genting Malaysia first-quarter performance: “Results underperformed our expectations and consensus. Yet, they were a lot better quarter-on-quarter on margin recovery.”
Analyst Samuel Yin Shao Yang added: “We expect second quarter 2025 to be seasonally slow but third quarter 2025 and fourth quarter 2025 to be seasonally stronger on higher spending.”
Following Genting Malaysia’s first quarter results, Maybank trimmed by circa 8 percent its full-year 2025 core net profit estimate for the firm, to MYR531 million.
The investment bank said in its Friday note that Genting Malaysia was scheduled to submit its bid for a full casino licence in New York City, in the United States, on June 27.
The state’s gaming commission launched in January 2023 a request for applications process for three casino licences in downstate New York. It outlined a US$1-billion minimum requirement for the licence fee and capital investment, with US$500 million payable within 30 days as the licence fee. The relevant casino permits would be granted for a period of between 10 and 30 years, depending on the size of the investment pledged.
International casino developers Wynn Resorts Ltd and Las Vegas Sands Corp recently announced they would not take part in the New York casino licence bidding process. A number of investment analysts have said the exit of Wynn Resorts and Las Vegas Sands from the race has further increased the chances of Genting Malaysia securing a New York licence.
In its Thursday announcement, Genting Malaysia said it remained “focused on enhancing Resorts World Genting’s appeal as a regional tourism hub by introducing new facilities and attractions, including new eco-tourism experiences at Genting Highlands”.
“The group will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment,” it added.
Genting Malaysia announced in May – outside of the reporting period – that it was proposing to acquire the remaining 51 percent of full ownership of loss-making, United States-based Empire Resorts Inc. The stake is controlled by the private investment vehicle of Malaysian entrepreneurs the Lim family, which also controls Genting Malaysia and its parent, Genting Bhd.
The deal involves a total cash consideration of US$41 million and is due to be completed by year-end. At the same time, a US$40-million debt previously owed by Empire to the Lim family’s private investment vehicle will now be owed to Genting Malaysia.
The move is seen by rating institutions as “credit negative” given the “nature and the financial weakness” of Empire Resorts.
(Updated 9.00am, May 30)
