By Ying Xian Wong

Genting Bhd. shares fell early Friday after the casino operator reported losses in its fourth quarter.

Shares dropped as much as 9.7% and were recently down 8.0% at 3.43 ringgit, equivalent to $0.77, bringing its 12-month losses to over 30%. Its unit, Genting Malaysia, was also 10.6% lower to 2.11 ringgit.

Genting late Thursday reported a fourth-quarter net loss of 169.4 million ringgit, compared with a net profit of 150.1 million ringgit in the year-earlier period. The loss was mainly due to higher finance costs, lower business volume at its resorts and casinos, and unrealized foreign exchange translation losses from Genting Malaysia's U.S. dollar-denominated borrowings.

Quarterly revenue fell 5.4% to 6.88 billion ringgit, on weaker performance in its leisure and hospitality division.

Maybank Investment Bank downgraded Genting to hold from buy and slashed its 2025 and 2026 earnings forecasts by 34% and 30%, respectively, after the weaker-than-expected results.

Dividend cuts to fund potential expansions, including Resorts World New York City and a Thai casino bid, may not sit well with investors, while the recovery pace of Resorts World Las Vegas remains a key upside factor, analyst Yin Shao Yang said in a note. Management changes at Genting and Resorts World Las Vegas, including a new CEO, could mark a turning point, he said.

Affin Hwang cut Genting's 2025 and 2026 earnings forecast by 30% and 20%, respectively, after the disappointing results.

Due to significant underperformance at both gaming subsidiaries, Genting Malaysia and Genting Singapore, the company may see a sluggish rebound in earnings momentum, analyst Andrew Lim said in a note.

Affin Hwang maintained a hold rating on Genting with a target price of 4.10 ringgit.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

February 27, 2025 20:50 ET (01:50 GMT)

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