Wednesday, July 28, 2010

Genting S’pore

Genting S’pore will be releasing its 2Q results on 12 Aug. DB is forecasting 2Q revenues of $754m (+64% qoq) and Ebitda of $314m (+151% qoq). Resorts World Sentosa will a/c for 85% or $643m of total revenues, up from 1Q’s $335m reaped over 46 days of operations vs 91 days in 2Q. Gross daily gaming is expected to decline 10% from $8.5m in 1Q to $7.7m due to the opening of Marina Bay Sands in late Apr but Ebitada margin is projected to improve to 41% from 27% in 1Q.

The 2Q forecast would bring 1H10 Ebitda to $439m, which would suggest upside risk to street estimate of $787m for full year 2010. DB has a TP of $1.45 for the stock, believing that current share price under-estimates S’pore gaming market potential.

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