Melco Resort, Genting Malaysia Post EBITDA Declines

Melco Resorts posts a profit for 2024 despite Q4 losses, while Genting Malaysia struggles with rising costs, declining margins, and a dividend cut.

Two major Asian casino operators reported falling Q4 earnings despite different yearly outcomes, showing an unsteady recovery in the gaming sector.

Melco Achieves Full-Year Profit Despite Q4 Setback

Melco Resorts bounced back from 2023 losses, earning PHP2.42 billion (USD 43.5 million) in 2024, even after a rough fourth quarter.

The company faced a PHP1.13 billion (USD 20.3 million) loss in Q4. While this marked a big improvement from its PHP11.47 billion (USD 206.3 million) loss a year earlier, it reversed the PHP1.52 billion (USD 27.4 million) profit from Q3.

Revenue hit PHP66.30 billion (USD 1.19 billion) in Q4, up 8.9% from 2023. But adjusted EBITDA dropped 2.6% year-over-year to PHP16.46 billion (USD 295.4 million) and fell 8.4% from Q3.

Higher staffing costs for better service reduced profits. The company is working to gain market share in Macau and attract big spenders to its Studio City property.

Major Roadblocks for Genting Malaysia

Genting Malaysia faced much bigger challenges. Its Q4 adjusted EBITDA plunged 79% to PHP2.28 billion (USD 40.9 million) due to:

• Rising payroll expenses

• Shrinking profit margins

• Currency losses

The company's annual revenue grew 7% to PHP134.35 billion (USD 2.41 billion), but it suffered a PHP4.62 billion (USD 83 million) loss in Q4, causing yearly profit before tax to fall by 28%.

Investors were surprised when Genting Malaysia cut its dividend by more than half. The company plans to save costs and improve marketing while staying “cautiously optimistic.”

Genting Malaysia runs Resorts World Genting, Malaysia’s only legal casino. With a predominantly Muslim population, gambling is considered taboo (haram, or prohibited by religion).

What’s The Plan for Genting and Melco?

Melco aims to draw more visitors by bringing back "The House of Dancing Water," while Genting Malaysia is adding new attractions at Resorts World Genting. Both are dealing with rising costs while trying to attract high-spending players.

Two major Asian casino operators reported falling Q4 earnings despite different yearly outcomes, showing an unsteady recovery in the gaming sector.

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