RM2.87B Revenue. 39% U.S. Growth. New York Ambitions Rising – Genting Malaysia Is Moving Early Under Lim Kok Thay
Genting Malaysia reported first-quarter revenue of RM2.87bn for the three months ended 31 March 2026, up 10% year-on-year, supported by growth across its leisure and hospitality operations in Malaysia, the UK, Egypt, the United States of America and the Bahamas. However, profitability weakened as higher operating, payroll and financing costs tied to its US expansion strategy weighed on earnings.
Adjusted EBITDA declined 13% to RM644.7m, while profit before tax fell 77% to RM43.1m. The group reported a loss for the financial period of RM25.2m compared with a RM52.0m profit in the prior-year period, highlighting a widening disconnect between revenue growth and earnings performance.
The quarter underscores mounting cost pressure associated with the commercial transition of Resorts World New York City (RWNYC), where Genting is investing heavily to establish a larger long-term foothold in the US gaming market.
New York casino transition raises operating and financing pressure
The US and Bahamas division recorded the strongest revenue growth, rising 39% year-on-year to RM694.4m following the consolidation of Empire Resorts and related operations. However, adjusted EBITDA for the segment fell 32% to RM80.5m as RWNYC absorbed higher operating, payroll and ramp-up costs during its transition to a full-scale commercial casino.
Management said the Empire Resorts consolidation partially offset disruption linked to RWNYC gaming floor changes during the transition process, though profitability remained under pressure as costs accelerated faster than revenue growth.
Finance costs rose 34% year-on-year to RM246.7m following RWNYC-related debt drawdowns and financing obligations linked to Empire Resorts, reinforcing the financial burden of Genting’s US expansion strategy. During the quarter, the group drew approximately USD755m under a senior secured facility to fund the commercial casino licence fee and development expenditure tied to RWNYC.
The impact was visible on the balance sheet. Interest-bearing instruments increased to RM15,672.2 million as of 31 March 2026 from RM12,715.4 million at year-end 2025 , reflecting a material increase in leverage as Genting scales investment in New York. Capital commitments stood at RM15.35bn at quarter-end, with the majority linked to RWNYC development expenditure.
Regional growth fails to fully offset margin pressure
Malaysia remained Genting’s largest earnings contributor, with leisure and hospitality revenue increasing 3% to RM1.67bn, supported primarily by gaming activity. However, EBITDA declined 1% to RM512.1m as higher payroll and operating costs weighed on profitability.
In the UK and Egypt, revenue increased 11% to RM460.7m, supported by the addition of Genting Casino Stratford, though EBITDA fell 8% amid geopolitical disruption affecting premium gaming demand and broader cost inflation.
Across the portfolio, higher labour costs linked to union agreements and minimum wage increases further compressed margins, limiting Genting’s ability to convert stronger revenue growth into earnings expansion.
Genting trades near-term profitability for long-term US positioning
Genting maintained a cautious near-term outlook, citing geopolitical volatility, inflationary pressure and weaker cross-border travel demand as risks for regional gaming markets. The company said leisure and hospitality conditions may remain challenging in the short term, even as it continues investing behind its long-term US expansion ambitions.
Commercially, the quarter suggests Genting is accepting weaker near-term profitability and higher leverage to strengthen its position in New York’s gaming market. While the strategy is pressuring earnings today, the scale of RWNYC-related investment signals management’s expectation that long-term returns from a larger commercial casino footprint will outweigh current margin compression.
Source: Genting Malaysia
