Fitch Ratings Inc says it expects earnings before interest, taxation, depreciation, and amortisation (EBITDA) margin at casino operator Genting Malaysia Bhd to “remain compressed at 23 percent from 2025 to 2027”.
The rating agency said that this was due to “higher operating costs and payroll-related expenses” in the company’s United Kingdom and United States operations.
It added: “This follows labour union contract renewals in the U.S. from the second half of 2024, and higher minimum wage [levels] and contributions to national insurance in the U.K., as mandated by the government. However, increased business volumes should mitigate the impact of higher operating costs and support margins.”
Genting Malaysia’s flagship property is the Malaysian casino monopoly Resorts World Genting (pictured). The group also runs casinos in the United Kingdom, Egypt, the United States, and the Bahamas.
In its latest rating commentary on Genting Malaysia, published on Wednesday, Fitch affirmed Genting Malaysia’s long-term issuer default rating at ‘BBB’, with a ‘stable’ outlook.
Net profit at Genting Malaysia reached MYR416.7 million (US$98.7 million currently) for the three months to June 30, up 406.8 percent year-on-year. That took first-half 2025 profit to MYR489.3 million, compared with MYR140.0 million in the first half of 2024, the company announced in August.
Fitch said it expected the performance of Genting Malaysia’s domestic operations to “grow by 5 percent in 2026” on the back of nationwide tourism initiatives and property enhancements. “We expect continued strengthening of the [Malaysian] ringgit and softness in VIP gaming volumes as risks for the rest of 2025, although VIP volumes in the second quarter of 2025 were up 14 percent year-on-year,” it added.
Fitch, however, cautioned that revenue at the Malaysian operations generated from international tourists and domestic traffic “may face challenges amid macroeconomic uncertainties from the U.S. trade tariffs and potential downside risks to the economic outlook”.
Looking to Genting Malaysia’s overseas operations, Fitch forecast revenue from the U.K. to increase by 5 percent in 2025, due to contributions from the newly-acquired Genting Casino Stratford.
Genting Malaysia acquired a 100-percent equity interest in the Aspers Stratford casino in London for around MYR160 million last April, rebranding the venue as Genting Casino Stratford.
The rating agency said Genting Malaysia’s EBITDA net leverage was likely to decline to around 3.5 times by 2027, from around 4.6 times in 2024, supported by EBITDA growth in its Malaysian and U.K. operations.
“We forecast neutral to positive free cash flow from 2025 to 2027, partially supported by lower-than-expected dividends paid in 2025 and 2026,” Fitch stated.
Genting Malaysia said last month its board had decided not to declare an interim dividend for the latest quarter.
Fitch also discussed Genting Malaysia’s bid for one of three full-scale downstate New York casino licences that are likely to be awarded by the end of 2025. The firm is proposing – via a US$5-billion bid – to extend and upgrade its existing Resorts World New York City slot-machine and electronic gaming facility in Queens.
Although it “faces strong competition”, a casino licence in New York “would provide access to a deep market” and “boost Genting Malaysia’s geographic diversification,” among other potential benefits, Fitch said.
Genting Malaysia announced last month that another U.S. business it controls – loss-making Empire Resorts Inc – was to become “debt-free” via a deal that will see some non-gaming assets sold off for US$525.0 million in cash.
In June, Genting Malaysia said it had completed its acquisition of the stake in Empire Resorts that it did not already control.
“We expect Empire Resorts recent restructuring to improve its cost structure and reduce debt, improving the overall financial profile,” Fitch commented.
