Genting Outlook 'Under Pressure' from Heavy Capex and Rising Debt, Warns CreditSights

• Credit analysis firm CreditSights has warned that Genting Group’s earnings outlook remains “under pressure,” despite some regional bright spots in its Q2 performance.
• The group’s H1 2025 results fell short of expectations, with underperformance at its key integrated resorts in Singapore and Las Vegas dragging down the overall numbers.
• CreditSights highlighted intensifying financial pressures, with parent company Genting Berhad’s free cash flow turning negative due to a surge in capital expenditure ( capex).
• The heavy spending on projects like the Resorts World Sentosa expansion has caused the group’s gross and net leverage ratios to worsen.
• While liquidity remains strong, the group’s credit profile is being strained, with significant hopes now pinned on securing a lucrative downstate New York casino licence.

The financial outlook for global casino giant Genting Group remains “under pressure,” according to a new report from credit analysis firm CreditSights. Despite a stronger second quarter from its Malaysian operations, the research firm maintained a cautious “market perform” recommendation after the group’s overall first-half earnings fell short of expectations.

Parent company Genting Berhad (GENT) saw its revenue and EBITDA decline by 7% and 20% respectively year-on-year for the first half. Its subsidiary Genting Malaysia (GENM) recorded only modest 1% revenue growth while its EBITDA fell by 4%.

Weakness at Key Integrated Resorts

The underperformance was largely driven by weakness at two of the group’s most important flagship properties. Genting Singapore, operator of Resorts World Sentosa, saw its revenue fall 10% and its EBITDA drop by 26%. This was attributed to reduced visitor numbers caused by ongoing renovations, increased competition from Marina Bay Sands, and rising staff costs.

In the US, Resorts World Las Vegas also had a difficult half, with revenues plunging 26% and EBITDA down 69% against a very high comparative period last year that benefited from the Super Bowl. While Genting’s domestic Malaysian operations remained stable, the weakness in these two major international hubs significantly impacted the group’s overall results.

The Financial Squeeze: Negative Cash Flow and Rising Leverage

The CreditSights report highlights the growing financial strain caused by Genting’s massive global capital expenditure program. Key pressure points include:

• Negative Free Cash Flow: Genting Berhad’s free cash flow swung from a positive RM 1.6 billion in H1 2024 to a negative RM 260 million (€54m) in H1 2025, primarily due to heavy spending.
• Surging Capex: Capital expenditure hit RM 2.4 billion (€498m) in the first half, with a total of RM 5.5 billion (€1.14bn) projected for the full year, much of it directed at the Resorts World Sentosa expansion.
• Worsening Leverage: As a result of the high spending and weaker earnings, the group’s gross and net leverage ratios have “worsened,” and interest coverage has weakened.

The report does note that the group’s liquidity remains strong, and upcoming bond maturities are viewed as manageable.

The New York ‘Golden Ticket’

Despite the current financial pressures, a major potential catalyst looms on the horizon. CreditSights notes that optimism remains high that Genting New York will be successful in its bid to secure one of the three full, downstate casino licences, with a decision expected by December 2025.

Winning this “golden ticket” would provide a path to substantial long-term growth for the group, though it would also likely impose further near-term strain on its balance sheet. The outcome of the New York licensing process is now a critical factor for the company’s future credit profile and its ability to manage its heavy investment cycle.