Genting Malaysia’s Q1 2025: A Tale of Profit Growth Amidst Revenue Headwinds
May 29, 2025
Genting Malaysia Berhad, a prominent name in the global leisure and hospitality sector, has just unveiled its financial results for the first quarter ended March 31, 2025 (1Q25). This report paints a compelling picture of resilience and strategic maneuvering, showcasing a significant surge in profitability despite a dip in overall revenue. It’s a classic example of how effective financial management, particularly concerning foreign exchange, can turn the tide. Let’s dive into the numbers and uncover the key takeaways from this latest earnings call.
The headline figures are certainly eye-catching: a remarkable 59% increase in profit before taxation (PBT) and a 42% improvement in net profit. These gains stand out, especially when juxtaposed against a 6% decline in total revenue. This report isn’t just about numbers; it’s about Genting Malaysia’s strategic response to a dynamic market. Join us as we dissect these results and peer into the company’s future trajectory.
Core Data Highlights: Unpacking the Performance
Overall Financial Performance: A Positive Turnaround
Despite a challenging revenue environment, Genting Malaysia’s profitability metrics showed robust improvement, primarily driven by a significant swing in foreign exchange impacts.
1Q25 Reporting Period
Adjusted EBITDA: RM737.2 million
Profit Before Taxation (PBT): RM184.0 million
Net Profit: RM52.0 million
Total Revenue: RM2,595.2 million
Basic Earnings Per Share: 1.28 sen
1Q24 Comparison Period
Adjusted EBITDA: RM654.1 million
Profit Before Taxation (PBT): RM115.9 million
Net Profit: RM36.7 million
Total Revenue: RM2,764.9 million
Basic Earnings Per Share: 1.02 sen
Adjusted EBITDA saw a 13% increase to RM737.2 million. This significant jump was primarily due to net unrealised foreign exchange translation gains of RM50.4 million on the Group’s USD denominated borrowings in 1Q25, a stark contrast to the net unrealised foreign exchange translation losses of RM130.0 million in the same period last year. This currency swing played a crucial role in boosting the bottom line.
Consequently, Profit Before Taxation (PBT) surged by 59% to RM184.0 million, and net profit improved by a robust 42% to RM52.0 million. Despite these profit gains, total revenue declined by 6% to RM2,595.2 million compared to 1Q24. Basic earnings per share also rose by 25% to 1.28 sen.
Segmental Performance: A Closer Look
Malaysia Operations (Resorts World Genting – RWG)
The Group’s leisure and hospitality segment in Malaysia experienced a slight contraction in revenue and EBITDA.
1Q25 Reporting Period
Revenue: RM1,622.1 million
Adjusted EBITDA: RM518.2 million
1Q24 Comparison Period
Revenue: RM1,748.5 million
Adjusted EBITDA: RM583.6 million
Revenue for Malaysian operations declined by 7% to RM1,622.1 million, with adjusted EBITDA decreasing by 11% to RM518.2 million. This reflects a broader industry trend observed in similar markets, particularly in the premium players segment. The timing of the festive season in 1Q25 compared to 1Q24 also contributed to the decline. Despite this, visitation to RWG remained similar to 1Q24, indicating underlying demand.
United Kingdom (UK) and Egypt Operations
Operations in the UK and Egypt faced currency headwinds and higher expenses.
1Q25 Reporting Period
Revenue: RM413.4 million
Adjusted EBITDA: RM55.5 million
1Q24 Comparison Period
Revenue: RM442.4 million
Adjusted EBITDA: RM73.9 million
Revenue here was lower by 7% to RM413.4 million, largely due to the strengthening of the Ringgit Malaysia (RM) against the British Pound (GBP). In local currency terms, the underlying performance remained steady, with a stronger hold percentage offsetting lower business volumes due to festive season timing. Adjusted EBITDA decreased by 25% to RM55.5 million, mainly due to expected higher operating and payroll-related expenses.
United States of America (US) and Bahamas Operations
Similar to the UK, these operations were impacted by currency fluctuations and increased costs.
1Q25 Reporting Period
Revenue: RM501.3 million
Adjusted EBITDA: RM119.0 million
1Q24 Comparison Period
Revenue: RM518.4 million
Adjusted EBITDA: RM153.4 million
Revenue declined by 3% to RM501.3 million, primarily due to the strengthening of RM against the US Dollar (USD). However, in local currency terms, revenue actually increased by 3%, driven by improved operating performance across both the Hilton Miami Downtown hotel and Resorts World Bimini (RW Bimini). Adjusted EBITDA was lower by 22% to RM119.0 million, mainly due to expected higher operating and payroll-related expenses.
Navigating Risks and Seizing Opportunities: The Outlook Ahead
Global and Regional Economic Headwinds
The global economic landscape remains uncertain, with ongoing international trade and market volatility. In Malaysia, economic growth is projected to slow down, as heightened geopolitical tensions continue to influence both domestic and global sentiments. While demand for international tourism is expected to remain resilient, recovery is anticipated to be uneven across regions, posing increasing challenges for the regional gaming market.
Strategic Initiatives Across Key Markets
Despite these uncertainties, Genting Malaysia remains cautiously optimistic about the near-term prospects of the leisure and hospitality industry and positive in the longer term. The Group is actively implementing strategic initiatives across its global portfolio:
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Malaysia: Enhancing Resorts World Genting (RWG)
The focus remains on bolstering RWG’s appeal as a regional tourism hub. This includes introducing new facilities and attractions, such as ecotourism experiences at Genting Highlands. The Group is also celebrating Genting Group’s 60th anniversary with special events and promotions. Operational efficiencies, yield management, and prudent cost management are key to navigating the challenging environment.
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United Kingdom: Expanding Market Presence
In the UK, Genting Malaysia is actively seeking new growth opportunities to enhance competitiveness. A recent significant move was the acquisition of Aspers Stratford in London, strengthening its position in the city’s casino market. The Group continues to explore further prospects, including product enhancements and new offerings, while maintaining a disciplined approach to cost management.
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United States: Consolidating Leadership and Growth
The Group aims to solidify its market leadership in the competitive New York State gaming sector. The completion of the acquisition of the remaining membership interest in Genting Empire Resorts LLC will allow for full realization of operating synergies between Resorts World New York City (RWNYC) and Empire. This will enable cross-marketing, resource sharing, and targeted campaigns to drive customer growth. Genting Malaysia is also closely monitoring and preparing to participate in the New York Gaming Facility Board’s Request for Applications.
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Bahamas: Boosting Visitation to RW Bimini
In the Bahamas, the Group is committed to driving visitation to RW Bimini by expanding its cruise strategy, increasing port calls, and intensifying marketing efforts. A potential increase in airlift from Miami to Bimini by late 2025 is also anticipated. The focus here is on optimizing operations and controlling costs to improve profitability.
Summary and
Genting Malaysia’s 1Q25 results present a mixed but ultimately positive financial narrative. While revenue saw a decline across most segments, the significant uplift in profitability, primarily driven by favorable foreign exchange translation gains, highlights the Group’s underlying financial resilience and management of its debt profile. The strategic initiatives outlined across Malaysia, the UK, the US, and the Bahamas demonstrate a clear roadmap for future growth and market adaptation.
The company is actively investing in enhancing its properties, expanding its market reach through acquisitions like Aspers Stratford, and optimizing operations to navigate a complex global economic environment. The focus on leveraging synergies and improving efficiency positions Genting Malaysia to capitalize on the anticipated resilience in international tourism demand.
This blog post provides an objective analysis of Genting Malaysia’s Q1 2025 financial report. It is important to note that this content does not constitute financial advice, nor does it provide any buy or sell recommendations. Readers should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
Key risk points to consider, as inferred from the report’s outlook, include:
- Ongoing global economic uncertainties and market volatility.
- Heightened geopolitical tensions impacting domestic and global sentiments.
- Uneven recovery in international tourism demand across regions.
- Increasing challenges within the regional gaming market.
- Fluctuations in foreign exchange rates, which can significantly impact reported earnings.
- The need to manage higher operating and payroll-related expenses across various regions.
Genting Malaysia’s Q1 2025 performance underscores its ability to adapt and find avenues for profit growth even when faced with revenue challenges. Their proactive strategies in enhancing existing assets and exploring new opportunities globally are noteworthy.
Do you think Genting Malaysia can maintain this growth momentum in the face of persistent global uncertainties? Share your thoughts and insights in the comment section below!
