Genting Malaysia has reported a net loss of MYR25.2 million in the first quarter of 2026, a sharp reversal that masks an otherwise solid operational picture across its global portfolio. The loss stems largely from elevated finance costs and pre-opening expenditure tied to Resorts World New York City, which officially launched its commercial gaming floor in late April.

Revenue Growth Offset by Expansion Costs

The company’s top-line performance remained encouraging, with total revenue climbing 10% year-on-year to MYR2.87 billion. Every major operating region contributed to the growth, including Malaysia, the United Kingdom, Egypt, the United States, and the Bahamas. Yet this expansion proved insufficient to overcome the capital-intensive nature of bringing a flagship Manhattan casino online.

The RWNYC project proved the primary culprit. Finance costs ballooned 34% to MYR246.7 million, driven by borrowings connected to the commercial casino license and the consolidation of Empire Resorts debt. During the quarter, Genting New York LLC drew down US$755 million from a senior secured credit facility, deployed toward license fees and ongoing capital expenditure.

Pre-tax profit declined sharply, falling 77% to MYR43.1 million. Adjusted EBITDA contracted 13% to MYR644.7 million. These numbers tell the story: pre-operating costs and integration expenses exerted real drag on profitability during the ramp-up phase.

Mixed Performance Across Operating Divisions

The United States and Bahamas segment logged a 39% surge in leisure and hospitality revenue to MYR694.4 million, buoyed by the Empire Resorts consolidation. However, adjusted EBITDA fell 32%, reflecting elevated operating and payroll expenses tied to the RWNYC transition. This divergence highlights the classic expansion challenge: growing revenues that haven’t yet translated into operating leverage.

Malaysia, Genting’s core market, posted a modest 3% revenue increase to MYR1.67 billion, supported primarily by gaming. Adjusted EBITDA ticked down 1% despite cost pressures from higher payroll and administrative expenses. The UK and Egypt operations improved 11% in revenue, helped by the newly acquired Genting Casino Stratford.

Forward Outlook Tempered by Near-Term Headwinds

Management struck a cautious tone on near-term prospects, citing geopolitical tensions and macroeconomic uncertainty as potential demand dampeners. Cross-border tourism and regional gaming markets face headwinds from weaker outbound travel trends and elevated travel costs. Granted, the company maintains confidence in its longer-term trajectory as RWNYC stabilizes and the wider portfolio matures.

For investors, the key question is timing. When RWNYC’s operational costs normalise and revenue scales, the group’s profitability should inflect meaningfully. Until then, expansionary pain will remain visible in the financials.