Genting Malaysia Earnings: Is the Bottom Finally In for Genting?

Genting Bhd📈 grew revenue 14% and still printed a headline loss. Genting Malaysia📈 grew revenue 32% and profit fell 71%. Neither number means what it seems — here is the short version.

Genting Bhd’s quarter in 60 seconds

• Revenue RM7.75 billion, +14% — growth is not the problem.
• PBT RM570 million, −46% — last year was flattered by one-off gains; this year carries RWNYC ramp-up and higher finance costs.
• Tax took RM372m (a 65% rate), minorities took RM225m — leaving equity holders a RM27.1 million loss (−0.70 sen EPS).
• Cash flow stayed strong and positive: RM2.58 billion from operations in 1H, RM17.6 billion cash on the balance sheet.

The tax hit — is it one-off?

It is not a one-off charge — and it is not permanent either. Both filings give the same cause: the ramping US operations are loss-making for tax purposes, and those losses cannot be recognised as deferred tax assets yet— so profitable Malaysia pays full tax while New York’s losses earn no credit. That pushed GENM’s effective rate to ~99%and GENT’s to ~65%. As RWNYC turns profitable, the drag fades — and the unrecognised tax assets can start coming back.

The driver: RWNYC finally switched on

Full casino operations opened 28 April — live tables and slots, not just video gaming machines. US revenue exploded 166% year-on-year to RM1.53 billion; segment EBITDA rose 83% despite launch payroll and pre-operating costs doubling. One more thing headline-watchers miss: strip the RM203m FX translation swing and GENM’s core EBITDA actually rose 2%.

Cash flow is the tell

GENM’s 1H operating cash flow rose 8% to RM1.18 billion— through the profit “collapse”. The cash that left went into New York: RM2.04 billion for the casino licence and RM1.13 billion of capex. Accounting pain, cash strength — the classic signature of an investment phase.

The RM2.35 question

Six months before this quarter, Genting Bhd offered RM2.35 to take GENM private — citing the US expansion in its rationale. The independent adviser called it “not fair and not reasonable”; the bid failed at 73.13%. GENM now trades at RM1.73 — 26% below the offer minorities rejected — just as the asset that offer was reaching for starts to deliver.

Prospects

• US: the growth engine — full integrated-resort groundbreaking done in July, Catskills synergies, cleaner comparison bases every quarter from here.
• Malaysia: cautious — soft tourism, cost discipline, Visit Malaysia 2026 extended into 2027.
• UK & Egypt: challenging — Middle East tensions hitting premium gaming; wage costs rising. No fresh dividend was declared with these results.

Bottom line

Operationally, the inflection is here — the US engine the group levered up to build is finally producing. Optically, the P&L looks awful for another quarter or two of tax drag and ramp costs. That gap between screen and substance is where bottoms usually form. Track GENM and GENTING live on the heat list.

Sources & further reading

• GENM & Genting Bhd — 2Q26 quarterly reports (Bursa announcements, quarter ended 30 June 2026): all segment, tax and cash-flow figures above, including each filing’s taxation note.
• The Edge — Genting to privatise Genting Malaysia in RM2.35-per-share buyout
• Malay Mail — independent adviser deems the offer “not fair and not reasonable”
• Bloomberg — GENM stays listed after the privatisation bid flops at 73.13%