Period 3Q12 for Genting Singapore Plc. (GENS)
Actual vs. Expectations The 9M12 adjusted EBITDA of SGD992.2m came in below expectations as it accounted for 66% of our FY12 full-year estimate and 70% that of the market consensus.
The 9M12 net profit of SGD515.5m accounted for 67% of the consensus’ full-year estimate.
Dividends No dividend was declared as expected.
Key Results Highlights 3Q12 net profit contracted by 16% QoQ to SGD138.4m on the back of a 5% decline in revenue over the period as gaming revenue dipped 6% on lower business volume. In addition, RWS also incurred SGD9.3m in preopening expenses for the Marine Life Park in the West Zone.
On a YoY comparison, 3Q12 net profit plunged 34% from that of SGD210.5m in 3Q11 as revenue fell by 16% from a year ago.
RWS continued to see unfavourable luck factor as its rolling chip-win dropped to 2.8% in 3Q12 from 3.1% in 2Q12 and 3.17% in 3Q11. Its market share for rolling chip volume also dropped slightly to 47% in 3Q12 from 48% in 2Q12 but was higher compared to that of 44% in 3Q11.
Daily average visit number to the theme park dropped to 9,100 in 3Q12 from 9,560 in 2Q12 and 9,400 in 3Q11. However, the ARPU remained unchanged QoQ at SGD86 in 3Q12, although it was higher from SGD84 last year.
The hotel occupancy improved further to 93% in 3Q12 from 92% in 2Q12 and 89% in 3Q11 despite an 8% increase in room inventory over the period. The average hotel room rate remained unchanged QoQ at SGD432 in 3Q12 but was higher YoY from SGD315 in 3Q11.
Outlook The resort is entering its busiest period of the year due to the year-end festive season and this should help its near-term earnings performance.
Change to Forecasts No changes to our FY12-FY14 EBITDA estimates for GENS.
Rating NOT RATED for GENS, OUTPERFORM for GENTING.
Valuation We are keeping our TP on GENTING unchanged at RM10.09/share, based on a 20% discount to its SOP, while awaiting its results to be released later this month.
Risks Risks to GENS include weaker than expected abusiness volume and luck factor.
Source: Kenanga
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