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Issuer Credit Research

Genting Malaysia Berhad Issuer Flash: 2Q and 1H 2026 Results

Issuer: Genting Malaysia | Document: Issuer Flash | Date: 2026-08-26 | Event: 2q 2026 Results

Report date: 2026-08-26 Event date: 2026-08-20 Event title: 2Q and 1H 2026 Results

Issuer: Genting Malaysia Berhad Coverage ticker: GENMMK

1. Flash Conclusion

Genting Malaysia's 2Q and 1H 2026 results do not change the new issuer summary's investment-grade but negative-direction credit view. Revenue expanded as RWNYC began commercial casino operations and Empire Resorts was consolidated, but 1H adjusted EBITDA, profit before tax and parent-attributable profit fell, while debt and finance costs rose materially. The April opening is an important execution milestone, yet it has not established that RWNYC can fund its development and debt service without continued support from the Malaysian cash engine.

The main credit deterioration is in cash flow and leverage rather than customer demand. At 30 June 2026, total borrowings were RM15.70 billion and cash was RM2.67 billion, producing calculated net debt of RM13.03 billion. Operating cash flow of RM1.18 billion did not cover RM1.13 billion of PPE purchases plus RM2.04 billion of intangible additions. The new US$2.0 billion secured Genting Americas facility and the post-period redemption of Empire Resorts' US$300 million notes reduce immediate refinancing risk, but replace it with a larger secured and project-dependent funding structure.

2. Results and Segment Movements

For 2Q26, revenue increased 32% year on year to RM3.85 billion, while adjusted EBITDA declined 18% to RM844 million. Management reported adjusted EBITDA of RM862 million excluding foreign-exchange effects, 2% above the comparable prior-year measure. Profit before tax fell 71% to RM144 million and profit attributable to owners declined to RM47 million from RM417 million. The gap between revenue growth and profit reflects the commercial-casino ramp-up, pre-opening and operating costs, depreciation, finance costs and an unfavourable comparison with prior foreign-exchange gains.

For 1H26, revenue increased to RM6.72 billion from RM5.51 billion, but adjusted EBITDA fell to RM1.49 billion from RM1.77 billion and profit before tax declined to RM187 million from RM687 million. Profit attributable to owners was RM44 million. Finance costs increased 39% to RM528 million. These figures are unaudited and have not been annualised.

Malaysia remained the principal earnings source, contributing RM3.43 billion of external revenue and RM1.13 billion of adjusted EBITDA. UK/Egypt contributed RM967 million and RM120 million, respectively. US/Bahamas revenue rose to RM2.23 billion and adjusted EBITDA was RM297 million. The US revenue increase is strategically encouraging, but the segment includes multiple properties and cannot be treated as RWNYC standalone performance. Investments & Others recorded negative adjusted EBITDA of RM63 million, underlining the volatility created by foreign exchange and investment items.

RWNYC opened its initial commercial casino on 28 April 2026 with 242 table games and 2,500 slot machines, and subsequently added approximately 1,400 slots. Groundwork for the next phase began in July. Economic ramp-up risk remains high because the group has not separately disclosed a mature property-level EBITDA or free-cash-flow run rate.

3. Cash Flow, Debt and RWNYC Funding

Operating cash flow was RM1.18 billion in 1H26, slightly higher than RM1.09 billion a year earlier. That improvement was overwhelmed by investment: PPE purchases were RM1.13 billion and intangible additions were RM2.04 billion, contributing to total investing cash outflow of RM3.39 billion. Borrowing proceeds of RM6.87 billion exceeded repayments and transaction costs of RM3.92 billion, explaining the increase in gross debt.

Total borrowings rose by RM2.99 billion from end-2025 to RM15.70 billion, while cash declined by RM173 million to RM2.67 billion. Calculated net debt increased by RM3.16 billion to RM13.03 billion. Short-term borrowings rose to RM2.47 billion from RM1.43 billion. Cash therefore covered short-term borrowings only narrowly on a consolidated gross basis, before considering trapped cash, other current liabilities or continuing capex.

In June 2026, Genting Americas entered into a US$2.0 billion secured facility to refinance Genting New York obligations, redeem Empire Resorts' US$300 million 7.75% notes due November 2026, and fund RWNYC. The Empire notes were redeemed on 2 July 2026. The refinancing is positive for the immediate maturity profile. The secured designation creates potential structural priority, but collateral scope, guarantees, upstream restrictions and recovery ranking remain unconfirmed; no instrument-level recovery conclusion is made.

Disclosed capital commitments totalled RM15.36 billion at June 2026, of which RM1.31 billion was contracted and RM14.05 billion was authorised but not contracted. RWNYC development expenditure represented RM12.56 billion of the total. This figure is not a fully contracted liability, but it is large relative to Genting Malaysia's cash, operating cash flow and equity and therefore remains the main determinant of leverage direction.

4. Credit Read-Through

The quarter confirms operating progress but not balance-sheet stabilisation. RWG continues to supply most consolidated EBITDA, while the geography receiving the most incremental capital has not yet demonstrated self-funding capacity. A 32% increase in quarterly revenue did not prevent lower adjusted EBITDA and sharply lower profit. The transition will be credit-positive only when incremental US EBITDA exceeds the combined burden of operating costs, depreciation, interest and remaining development spending.

The results also confirm the importance of separating Genting Malaysia from Genting Berhad. Genting Malaysia is the covered issuer and GENMMK is the project ticker; Genting Berhad is the controlling shareholder and is separately covered as GENTMK. S&P's core-subsidiary treatment and RAM's expectation of a very high likelihood of parental support strengthen Genting Malaysia's issuer-level ratings, but do not establish a Genting Berhad legal guarantee for every Genting Malaysia or US subsidiary obligation.

There is no evidence of immediate liquidity distress. The group retains cash, operating cash generation and demonstrated funding access, and it removed the Empire 2026 maturity. However, S&P's BBB-/Negative and RAM's AA1/Negative outlooks leave limited tolerance for a prolonged cash-flow shortfall. The 1H26 increase in leverage moves the company closer to, not farther from, the agencies' downside concerns.

5. Key Numbers

RM million unless stated 2Q2026 2Q2025 1H2026 1H2025 / end-2025
Revenue 3,853.3 2,918.5 6,720.2 5,513.7
Adjusted EBITDA 844.0 1,029.6 1,488.7 1,766.8
Profit before tax 143.8 503.3 186.9 687.3
Profit attributable to owners 47.4 416.6 43.6 489.3
Operating cash flow — — 1,176.8 1,089.9
PPE purchases — — 1,133.3 Not shown here
Intangible additions — — 2,044.3 Not shown here
Cash and cash equivalents — — 2,674.0 2,847.2 at end-2025
Total borrowings — — 15,703.1 12,716.0 at end-2025
Net debt, calculated — — 13,029.1 9,868.8 at end-2025
Finance costs — — 527.7 380.2

Net debt is calculated as total borrowings less cash and cash equivalents and excludes financial assets and restricted cash. Period-end balance-sheet figures are not directly comparable with six-month flow figures. All 1H26 results are unaudited and are not annualised.

6. What To Watch Next

7. Sources

Unconfirmed items include the full US secured-facility documentation, a complete June 2026 maturity ladder, committed undrawn liquidity, unrestricted cash by legal entity and RWNYC standalone EBITDA/free cash flow. Live bond prices and spreads were not checked.