Key Points
- Despite revenues growing 32% compared to the previous year to RM3.85 billion (951.4million), net profit dived 93% to RM27.0 million (6.7 million) from a year earlier.
- The US and Bahamas revenue of RWNYC increased 166% after the commencement of full-fledged casino operations on 28 April, however, EBITDA declined by 18% due to an exchange gain/loss of RM202.7 million and a finance expense increase of 43%.
- Total debt grew 23% to RM15.7 billion while there was still RM12.56 billion development commitment of RWNYC at end-June; no interim dividend was declared for H1 2026.
RWNYC drives a 32% revenue surge in Q2 2026, yet borrowings hit RM15.7 billion and net profit shrinks to a fraction of last year’s figure.
A casino company that just tripled its US revenue should be celebrating. Genting Malaysia is not, at least not without caveats. The earnings for the second quarter in 2026, which were submitted to Bursa Malaysia on 20 August, give two completely contradictory pictures based on the line in the financial statements that one chooses to analyze first.
The total revenue for the quarter ended 30 June 2026 was reported at RM3.85 billion (951.4 million), indicating an increase of 32% from the same quarter in the previous year where revenue stood at RM2.92 billion. However, the net profit in the particular quarter under analysis was very small, RM27.0 million (6.7 million). It is this difference that makes all the difference.
New York Finally Opens, and the Revenue Numbers Show It
The Resorts World New York City opened on 28 April 2026 to be the first commercial casino ever to operate in New York City. This facility had 242 gaming tables and 2,500 slot machines. The earnings effect was instant. The total income that has been earned from the U.S. and Bahamas segment is RM1.53 billion (378.7 million) and this has experienced an increase of 166% compared to RM576.0 million earned last year. In addition, there has been an increase of 82.9% in EBITDA which is RM216.6 million (53.6 million).
The performance was more remarkable because of the environment in which it happened. According to Nomura analysts, the US segment revenue was already growing by 121% when compared to the third month of the 2026 quarter, while the segment EBITDA was up 169% in the quarter.
The casino continued to grow following its opening. An additional 1,400 slot machines were installed in July, while Genting Malaysia commenced construction on the next stage of development, to be completed as an integrated resort with estimated costs of $5.5 billion. Q2 2026 performance figures further included revenues from the acquisition of two companies in 2025, namely the Genting Casino Stratford in London, acquired in April 2025, and Empire Resorts, acquired in May 2025.
Where the Profit Went?
Revenue grew. Profit nearly vanished. The explanation sits in two places: a punishing forex swing and rapidly rising finance costs.
The company posted a net foreign exchange loss of RM18.1 million (4.5million) for the quarter ended 30 June 2026, down from RM184.6 million (45.7 million) forex gain for Q2 2025. In effect, this RM202.7 million shift in fortunes was caused by the translation of the company’s dollar debt as the ringgit appreciated. Remove this from the calculation, and the adjusted EBITDA would have amounted to RM862.1 million, instead of the actual figure of RM844.0 million, which is down by 18% year on year.
Financing costs compounded the problem. Group finance costs rose 43% to RM281 million during the quarter. Earlier in the year, Genting New York LLC drew $755 million from a new senior secured credit facility to fund the RWNYC commercial casino licence fee and development capital. Subsequently, in June, Genting Americas made another 3.85 billion, increasing by 23% from RM12.72 billion at the end of 2025. Net gearing stood at 135%.
The committed capital expenditure outstanding makes the balance sheet position even harder to ignore. Genting Malaysia disclosed RM15.36 billion in authorised capital commitments not yet provided for in its accounts, with RM12.56 billion of that figure earmarked directly for RWNYC development expenditure. The spending is far from over.
Resorts World Genting Runs Flat
Back in Malaysia, the group’s domestic operation provided little relief. Resorts World Genting, the country’s only legal casino complex, recorded leisure and hospitality revenue of RM1.77 billion ($437.7 million) in Q2 2026, a marginal 1% decline from RM1.78 billion in the same period last year. The company pointed to softer visitor numbers and weaker consumer spending, alongside higher payroll costs following a union agreement renewal.
Adjusted EBITDA from the Malaysian operations did rise slightly to RM615.0 million ($152.2 million) from RM606.3 million, and its margin increased by one percentage point to 35%. In comparison to the first quarter of 2026, the RWG saw a growth in revenue of 6%, thanks to a better VIP win rate, according to Inside Asian Gaming. However, the fact that there is no annual growth in revenue shows a clear picture – volumes are not rising fast enough to cover other expenses.
As Genting Malaysia has said, it maintains caution regarding the immediate future in Malaysia because of increased airfares and travel fuel costs.
What Analysts Are Saying?
The research community has responded with a mix of recognition for RWNYC’s early revenue performance and real concern about the pace of earnings recovery.
PublicInvest said that while RWNYC’s contribution was visible in the top line, its “bottom line was dragged down by higher costs,” noting: “While we had anticipated the new casino operations in New York to incur higher operating costs at the initial stage, the scale of losses came in larger than expected.” The bank cut FY2026 to FY2028 earnings forecasts by an average of 11% and kept a “hold” call with a revised target price of RM1.88, down from RM2.14.
Kenanga Research took a closer look at the underlying numbers. Stripping out RM76 million in non-operating expenses and the RM18 million forex loss, Kenanga pegged core net profit at RM142 million in Q2, down 40% year-on-year but markedly better than the RM10 million recorded in Q1 2026. That quarter-on-quarter recovery reflected the absence of high pre-opening costs, including RWNYC recruitment and training expenses, that had hit Q1 hard. Still, Kenanga flagged that interest expenses tied to the $600 million upfront gaming licence payment continued to weigh on profit before tax.
Maybank’s pre-results research, published in late July, had already flagged RWNYC’s early gaming performance as a brighter spot. Table game weekly gross gaming revenue had climbed to $11.1 million from $4.9 million in the opening week, with average daily revenue per table reaching $6,539, above Maybank’s own forecast of $5,500. Maybank analyst Samuel Yin Shao Yang also noted that the lower gaming machine tax rate at RWNYC, dropping from 68% to 56% following conversion from video lottery terminals to full slot machines, would have a meaningful earnings impact estimated at $68 million for FY2026.
GENM shares closed at RM1.72 on 21 August, down 16% year-to-date.
The First Half Picture, and What Comes Next
The first half of the year 2026 saw the company’s revenue grow by 21.9%, reaching RM6.72 billion ($1.66 billion), while net profit dropped by 91% to RM43.6 million as compared to RM489.3 million earned in the first six months of 2025. Adjusted EBITDA fell by 15.7% to RM1.49 billion. No dividend was paid for H1 2026.
Genting Malaysia said the US market is expected “to remain resilient, underpinned by robust consumer spending and a steady labour market.” Its groundbreaking in July on the RWNYC expansion confirms that commitment is not slowing.
Expert Analysis
RWNYC’s early numbers are genuinely encouraging. Weekly table game revenue more than doubled from opening week, average daily revenue per table beating analyst forecasts by $1,000, and US segment EBITDA rising 169% quarter-on-quarter are not the metrics of a property struggling to find its footing. Kenanga’s point about Genting being the only full-service casino in New York City for the next three to five years is the structural advantage that makes the long-term investment case. The problem is the gap between that long-term case and the current balance sheet reality. With net gearing at 135%, finance costs rising 43% in a single quarter, and RM12.56 billion in committed RWNYC development spending still ahead, earnings will remain compressed for the foreseeable future. The forex loss distorted Q2’s headline numbers, but the underlying trend of rising debt costs eating into operating gains is not a one-quarter issue. Investors watching Genting Malaysia right now are essentially watching a company pay for its biggest bet in real time, and the payoff is still years away.
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