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, a high-cost addition to the corporation's portfolio, led to a staggering 89% drop in the second quarter net profit in FY2026. The New York City casino and resort operator's Q2 net profit fell to RM47.4 million from RM416.6 million a year prior. The plunge was largely due to forex translation losses, increased operating and finance costs, and the expenses tied to the launch and expansion of Resorts World New York City's (RWNYC) full commercial casino operations.
However, the Q2 revenue jumped 32% to RM3.85 billion from RM2.92 billion a year earlier, primarily driven by the launch of RWNYC's casino operations. Despite the substantial revenue growth, GENM's Q2 profit plunged 91% to RM43.6 million, while revenue rose 22% to RM6.72 billion. Analysts at PublicInvest cautioned that the topline growth from the New York casino expansion might not be earnings accretive in the next one to two years due to its hefty project cost of US$5.5 billion.
The bank lowered its FY2026-2028F earnings forecasts by an average of 11% and maintained a "hold" rating for GENM shares, with a target price of RM1.82.
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- US biz a double-edged sword for Genting Malaysia freemalaysiatoday.com
