Key Moments:
- Genting Berhad (GENT) and Genting Malaysia (GENM) experienced earnings declines in the first half of 2025, with GENT’s revenues and EBITDA dropping 7-20 percent year-on-year.
- Free cash flow for GENT fell to negative RM 260m (€54m) in the first half, and capital expenditure rose to RM 2.4bn (€498m).
- Despite liquidity strengths, leverage ratios increased to 5.9x/2.9x for GENT and 7.1x/5.5x for GENM.
Mixed Performance Across Key Markets
A recent CreditSights report highlighted sustained pressure on the financial outlook for Genting Group, attributing this to ongoing capital-intensive investments and increasing leverage, despite improved results at Genting Malaysia in the second quarter. Both Genting Berhad (GENT) and Genting Malaysia (GENM) maintained their “market perform” ratings as results from the first half of 2025 lagged expectations.
GENT reported a year-on-year decrease in revenue and EBITDA of 7-20 percent. GENM saw only slight revenue growth of one percent but a four percent drop in EBITDA. According to CreditSights, Genting Singapore was a major contributor to this weaker performance: revenue at Genting Singapore fell by 10 percent, and EBITDA declined by 26 percent, largely due to ongoing renovations at Resorts World Sentosa, increased competition from Marina Bay Sands, and elevated staff costs. Analysts expect only a gradual recovery starting in the second half of 2025 as new attractions start to draw visitors.
At Resorts World Las Vegas, the downturn was even more pronounced. Revenues there plummeted by 26 percent, and EBITDA tumbled 69 percent from the previous year’s high base during the Super Bowl period. The report also cited vulnerability to broader economic uncertainties, but noted that operational improvements and the resolution of a regulatory issue could help earnings stabilize soon.
Regional Operations Offer Relative Stability
GENM reported steadier results in Malaysia, where both revenue and EBITDA grew one percent, bolstered by strong domestic traffic and supportive tourism policies. Operations in the UK, Egypt, the US, and the Bahamas posted revenue gains, but rising operating and payroll costs put pressure on margins.
Cash Flow Pressures and Higher Leverage Ratios
CreditSights identified mounting concerns regarding cash flow and leverage across the Genting Group. Genting Berhad’s free cash flow turned negative, recording RM 260m (€54m) in outflows in the first half—down from positive RM 1.6bn (€332m) in the previous year—which the report attributed primarily to substantial capital spending. Capital expenditures surged to RM 2.4bn (€498m), with RM 1.2bn (€249m) dedicated to expanding Resorts World Sentosa. Projections for the full year show GENT may spend as much as RM 5.5 billion (€1.14 billion) in capex.
In response, both GENT and GENM moved to reduce dividends, with payouts amounting to RM 772m (€160m) and RM 227m (€47m) respectively, focusing on conserving cash. Leverage ratios deteriorated further, with gross/net leverage coming in at 5.9x/2.9x for GENT and 7.1x/5.5x for GENM, while interest coverage also weakened.
| Company | First Half Revenue Change (YoY) | First Half EBITDA Change (YoY) | Gross/Net Leverage | Dividends Paid |
|---|---|---|---|---|
| Genting Berhad (GENT) | -7% to -20% | -7% to -20% | 5.9x / 2.9x | RM 772m (€160m) |
| Genting Malaysia (GENM) | +1% | -4% | 7.1x / 5.5x | RM 227m (€47m) |
| Genting Singapore | -10% | -26% | N/A | N/A |
Liquidity and Refinancing Outlook
Despite the increased financial strain, CreditSights reported that liquidity remains robust, with cash positions covering short-term debt by more than eight times. The group’s upcoming bond maturities, including a €1.4bn note due in January 2027, are considered manageable. Refinancing strategies may include new debt offerings or asset sales. Empire Resorts is targeting a €490 million asset sale by year-end to pay down its €280 million bond.
Long-term Growth Prospects Remain in Focus
There continues to be optimism surrounding Genting New York’s bid for one of three new downstate casino licenses, with a decision expected by December 2025. If successful, the license could pave the way for significant long-term expansion but may place added short-term financial pressure on the group’s balance sheet. Genting Berhad is also aiming to accelerate the sale of a Miami land parcel valued at more than €1.1 billion to help fund its growth initiatives.
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- Author
Daniel Williams
