Genting Malaysia completes acquisition of Empire Resorts
Genting Malaysia has acquired the remaining 51 per cent of Empire Resorts shares.
Malaysia.- Genting Malaysia has announced that it has completed its acquisition of a 51 per cent stake in Empire Resorts from Kien Huat Realty III Limited. The US$41m cash deal means Genting now owns the US business outright.
Empire Resorts operates three businesses in New York: the Resorts World Catskills casino complex, Resorts World Hudson (a casino with video lottery terminals) and the mobile sports betting business Resorts World Bet. A US$40m debt owed to the Lim family’s investment company will be transferred to Genting Malaysia as a result of the deal.
Moody’s deemded the move as credit negative. The agency said that Empire’s ongoing losses may lead Genting Bhd, via Genting Malaysia, to continue providing financial support. Empire has already received about US$750m in support from Genting Malaysia. It reported a net loss of US$59m in 2024.
CreditSights maintained its “outperform” rating for Genting Malaysia but warned that the transaction could increase Genting Malaysia’s debt levels and raise concerns about related-party transactions.
Genting Malaysia net profit improves in Q1 despite fall in revenue
Genting Malaysia’s Q1 net profit was MYR52m (US$12.2m), up 42 per cent year-on-year. Revenue was MYR2.5bn (US$613m), down 6 per cent in year-on-year terms and 6 per cent sequentially. The group reported first-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of MYR737.2m (US$173m), an increase of 13 per cent year-on-year.
In Malaysia, revenue from the leisure and hospitality sector, which includes casino operations, was MYR1.62bn (US$382m), down 7 per cent year-on-year. Adjusted EBITDA was down 11 per cent to MYR518.2m (US$). According to the company, this reflects an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment.
In the United Kingdom and Egypt, the group reported a 7 per cent decrease in revenue to MYR413.4m (US$97.4m). Adjusted EBITDA declined by 25 per cent to MYR55.5m (US$1.3m), mainly due to expected higher operating and payroll-related expenses.
In the United States and the Bahamas, revenue declined by 3 per cent to MYR501.3m (US$501.3m) due to the strengthening of the ringgit against the US dollar. Adjusted EBITDA declined by 22 per cent to MYR119.0m (US$28m).
