KUALA LUMPUR: Shares of GENTING BHD [] fell in early trade on Wednesday, Feb 23, which dragged the FBM KLCI into the red.
Genting fell 18 sen to RM10.22 with 1 million shares done. Genting Singapore-C& fell 10 sen to 90 sen.
The KLCI fell 6.84 points to 1,506.79. Turnover was 173 million shares done valued at RM140.58 million. Decliners beat advancers 336 to 71 while 148 stocks were unchanged.
Genting is expected to release its fourth quarter results later Wednesday.
Genting Singapore plc, had on Tuesday, posted net profit from continuing operations of S$91.65 million in the fourth quarter ended Dec 31, 2010 compared with net loss of S$101.69 million a year ago. For FY10, its net profit was S$657.20 million compared with a net loss of S$282.24 million.
At the discontinued operations level, Genting Singapore posted net loss of S$150.32 million after suffering net losses of S$241.97 million. For FY10, it was net profit of S$37.76 million versus net loss of S$277.56 million in FY09.
Net loss attributable to equity holders of Genting Singapore were S$150.32 million versus net loss of S$101.67 million a year ago. For FY10, net profit was S$37.76 million versus net loss of S$277.56 million in FY09.
RHB Research: Genting Singapore FY10 core net profit below expectations
Written by theedgemalaysia.com Wednesday, 23 February 2011 10:07
KUALA LUMPUR: RHB Research Institute said Genting Singapore plc’s FY10 core net profit was below its expectations, but above consensus, making up 94% of its FY10 core net profit and 107% of consensus.
“The main reasons for the discrepancy were two-fold: 1) higher interest expense of RM95m in 4Q (+77.5% on-quarter); and 2) higher effective tax rate of 29% (ex-exceptional items) in 4Q.
“Note that on the topline and EBITDA levels, Genting Singapore’s earnings were in line with our forecasts,” it said on Wednesday, Feb 23.
RHB Research said revenue from RWS in Singapore rose 11.5% on-quarter, due to higher VIP volumes (+40% on-quarter), although this was offset slightly by weaker luck factor on a on-quarter basis.
Gross gaming revenue (GGR) per day works out to about S$8.4m in 4Q10 (3Q10: S$8m), notably still about 33% above MBS’ S$6.3m (or US$5m) per day.
“Annualising the YTD numbers, RWS and MBS’ GGR per day imply a 58% market share for RWS (up from c. 55% in 3Q10) in 4Q10, while total annualised gaming revenue works out to be about S$5bn in 2010. This is 11% higher than our annualised projections of S$4.5bn for the year,” it said.
RHB Research said there was o change to its FY11-12 forecasts.
“We introduce our FY13 forecast. We have however, trimmed our fair value to RM2.30 (from RM2.40), after : 1) rolling forward our DCF-based valuation to FY11; 2) updating our WACC assumptions; and 3) updating GS’ net cash/(debt) position to 4Q10,” it said.
RHB Research said in the near term, it does not think there are any catalysts for the stock, as the novelty factor has worn off and the IRs continue to grapple for market share.
The next rerating for the stock may only come once the second phase is ready, depending on whether it is well-received, and this may bring RWS’ earnings to the next stage of growth. For now, it maintains its Market Perform call on the stock.
http://www.theedgemalaysia.com/business/182096-rhb-research-genting-singapore-fy10-core-net-profit-below-expectations.html
BEIJING:Genting Singapore reported yesterday higher revenue from its casino in the city-state, but it now lags rival Marina Bay Sands in terms of profitability.
Genting Singapore said its Resorts World Sentosa casino-resort had adjusted earnings before interest, taxes, depreciation and amortisation of S$389.8 million (S$1 = RM2.38) on revenues of S$775.2 million for the three months ended December.
This was below the S$391.3 million reported by Las Vegas Sands for its Singapore casino.
The Marina Bay Sands’ revenue for the three months was lower at S$717.1 million. — Reuters
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http://www.btimes.com.my/Current_News/BTIMES/articles/20110222235904/Article/index_html
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