Tiger Airways

Tiger Airways: Shocking 2QFYMar15 results, with net loss of $182.4m from profit of $23.8m in 2QFY14 dragged by one-off charges of $159m, while revenue slipped 10.5% y/y to $146.7m, weighed by weak operating performance of Tigerair Singapore. Management rationalized that the lower sales came on the back of weaker yields (-10.4%), partially offset by an improvement in load factor (+4ppt), amid the reorganization of Tigerair Singapore's operations. The bottom line was dragged by mainly one-off charges arising from its i) planned 40%-stake disposal of Tigerair Australia which resulted in a $59.8m loan impairment, as well as a ii) $93m accounting provision relating to the sublease of 12 surplus aircraft to InterGlobe Aviation. This brought Tiger's 1HFY15 net loss to $145.8m, far beyond consensus' full year estimate of $73.7m in losses. We do not rule out further downward revisions by the street to come in the near term, as the budget carrier continue to see headwinds without respite. In just six months since Mar'14, Tiger saw its book value slashed by 93% to $22.6m. At $0.295, Tiger is valued at a steep 14.8x P/B.