US biz a double-edged sword for Genting Malaysia
Its Q2 net profit plunged 89% due primarily to surging costs as its New York resort commenced full casino operations.
Genting Malaysia's Resorts World New York City launched full casino operations in April, resulting in an 89% plunge in the company's second quarter net profit. The decline was primarily due to foreign exchange translation losses, higher operating and finance costs, and increased depreciation for the US operations. Revenue for the quarter ended June 30 increased 32% to RM3.85 billion from RM2.92 billion a year earlier, driven by the new casino's success.
However, the topline was negatively impacted by the RM22.2 billion cost of the US casino expansion, leading PublicInvest bank to cut its earnings forecasts by 11% for FY2026-2028.
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- US biz a double-edged sword for Genting Malaysia freemalaysiatoday.com
