Shooting through the roof. Genting Singapore’s (GS) 1HFY10 core net profit of an estimated S$502.1m was way above expectations, as 1H earnings alone exceeded both our and consensus FY10 expectations. In 2QFY10, GS’ EI loss of S$23.8m was due to an impairment loss on receivables relating to doubtful debts for its VIP patrons, which brought total EI loss in 1H10 to S$476.4m. Although topline numbers made up 56.5% of our revenue assumptions, we note that EBITDA margins of 40.4% in 1H10 were much higher than our projected 28.5% for FY10. This, together with the positive effective tax rates in the 2Q10 (due to an S$86.8m deferred tax writeback) caused the outperformance in the bottomline.
Genting Singapore PLC : Shooting Through The Roof - 13/08/2010
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