Towards Financial Freedom
Genting Singapore - Implications of MBS' 1QFY13 results SELL
- Las Vegas Sands Corporation (LVS) announced its 1QFY13 results yesterday. LVS' results were above consensus estimates due to strong performances from the casinos in Macau and Singapore.
- LVS' subsidiary, Marina Bay Sands (MBS) reported a 16.5% QoQ expansion in revenue in 1QFY13 while EBITDA rose 31.2% QoQ to US$396.8mil. EBITDA margin was 49.9% in 1QFY13.
- If we were to adjust for the lower VIP win percentage in 4QFY12, then MBS' EBITDA would have declined 2.4% QoQ in 1QFY13.
- MBS benefited from a climb in the rolling chip volume and higher win percentage in the VIP segment in 1QFY13 compared with 4QFY12.
- MBS' rolling chip volume rose 10.6% QoQ to US$18.2bil in 1QFY13 while volume of business in the mass market segment improved 7.8% to US$1.2bil. Win percentage of the VIP segment inched up from 2.14% in 4QFY12 to 2.51% in 1QFY13.
- Credit extension in 1QFY13 was not as aggressive as 4QFY12. MBS' accounts receivable rose by US$41.4mil or S$66.4mil from US$1.05bil (S$1.28bil) in 4QFY12 to US$1.09bil (S$1.34bil) in 1QFY13. Provisions for doubtful debts was US$39mil (S$48.3mil) in 1QFY13 versus US$38mil (S$46.5mil) in 4QFY12.
- However for the first time in its history, MBS wrote-off accounts receivable of US$11mil (S$13.6mil) in 1QFY13.
- Hotel occupancy rates remained high at MBS in 1QFY13. Average hotel occupancy rate was 98.5% in 1QFY13 while average daily rate was US$378.
- In a separate development, Genting Singapore PLC (GenS) clarified that Mr Tan Hee Teck is neither slated to move to another post in the Genting Group nor has Resorts World Sentosa appointed any CEO-designate successor.
- In spite of the positive follow-through from MBS' results to GenS, we are maintaining a Sell on GenS due to its demanding valuations. The group is expected to release its 1QFY13 results today.
Source: AmeSecurities
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