KUALA LUMPUR (Aug 20): Genting Bhd (KL:GENTING) slipped into a loss in the second quarter despite increased revenue and operating earnings, as higher finance costs and an absence of significant disposal gains recorded a year earlier weighed on its bottom line.

The diversified gaming and leisure group posted a net loss of RM27.10 million for the three months ended June 30, 2026 (2QFY2026), compared with a net profit of RM243.50 million a year earlier. Revenue, however, rose 14% to RM7.75 billion from RM6.78 billion, thanks to the group's leisure and hospitality, and plantation business. 

Genting attributed the huge decline mainly to higher finance costs and depreciation, lower interest income and smaller share of profits from its joint venture and associates. The year-ago quarter also included a RM338.3 million gain from the disposal of assets classified as held for sale.

At one of its resorts, Resorts World Genting, the group managed to report higher Ebitda despite lower revenue, helped by operating cost management. This was despite higher payroll expenses following the renewal of a union agreement that offset the improvement.

Meanwhile, in the US, the initial phase of full commercial casino operations with the introduction of live table gaming and slot machines at Resorts World New York City (RWNYC), which began on April 28, helped lift revenue. Separately, the group's Resorts World Las Vegas also benefitted from increased convention attendance and stronger high-end gaming activity.

Genting's plantation division also reported higher revenue on increased fresh fruit bunch production, while its downstream manufacturing business benefitted from stronger sales volumes and margins.

Separately, Genting's 73.9%-owned subsidiary Genting Malaysia Bhd (KL:GENM) reported an 89% plunge in net profit to RM47.4 million for 2QFY2026 from RM416.6 million a year earlier.

Revenue nevertheless jumped 32% to RM3.85 billion from RM2.92 billion, mainly due to contributions from the commencement of commercial casino operations at RWNYC, as well as from the acquired Genting Casino Stratford and consolidated Genting Empire Resorts LLC.

The decline in net profit was partly driven by less favourable foreign-exchange comparison. Genting Malaysia recorded a RM18.1 million unrealised forex translation loss on its US dollar-denominated borrowings in 2QFY2026, compared with a RM184.6 million translation gain a year earlier.

Genting Malaysia said it remains cautious about near-term prospects in Malaysia amid higher airfares and travel-related fuel costs, which could weigh on domestic and regional tourism.

"The group is focused on operational discipline and yield management to optimise performance and manage costs, whilst continuing to enhance Resorts World Genting’s integrated resort offerings to drive visitation and customer engagement," it said.

In New York, RWNYC launched its full commercial casino operations with 242 table games and 2,500 slot machines in April, with another 1,400 slot machines subsequently added. Genting Malaysia broke ground in July on the next phase of the project, which is intended to transform RWNYC into a full-scale integrated resort encompassing gaming, entertainment and hospitality.

For the first half of FY2026, Genting's revenue rose 8% to RM14.41 billion, but net profit fell 70% to RM74 million from RM248.1 million. Genting Malaysia, meanwhile, saw first-half revenue rise 22% to RM6.72 billion, while net profit plunged 91% to RM43.6 million from RM489.3 million.

Neither Genting nor Genting Malaysia declared an interim dividend for the first half.

Shares of Genting settled four sen or 1.82% higher at RM2.24 on Thursday, valuing the group at RM8.68 billion. Meanwhile, Genting Malaysia settled one sen or 0.57% lower at RM1.73, giving it a market capitalisation of RM10.27 billion.