In line. Genting Malaysia’s (GM) 1QFY10 core net profit was in line with expectations, making up 29-32% of our and consensus forecasts. In 1QFY10, GM recorded an impairment loss of RM110.9m for its investment in Walker Digital, which, after assessment of the excess of the carrying value over the estimated recoverable amount. Although GM’s 1Q earnings would seem stronger versus the normal contribution of 20-25% of full year earnings in the 1Q, we note that the timing of the Chinese New Year festive period would have boosted earnings during the quarter. In addition, with the opening of both the IRs in Singapore, we do expect a certain level of cannibalisation of market share in the remaining quarters of FY10, albeit a small amount, to result in weaker visitor numbers for the rest of the year, until the novelty factor wears off. No dividend was declared during the quarter.
Genting Malaysia Berhad : Holding On To Market Share - 31/5/2010
No comments:
Post a Comment