Genting SP: Marina Bay Sands (MBS) reported adjusted 1Q15 EBITDA of US$415.3m (-4.6% y/y), with total gross revenue coming in at US$784.8m (-6.1% y/y)
Rolling Chip win percentage of 3.41% in 1Q15 was above the expected range and in-line with the 3.41% achieved in in the previous year, on rolling chip volumes of US$10.1b (-22% y/y), indicating a drop in VIP business.
Meanwhile, the mass market held steady, with slot handle US$3.1b (+1.1%) and hold rate of 4.6% (1Q14: 4.8%) and non-rolling chip drop of US$1.1b (-4.2%) and win rate of 25.3% (1Q14: 23.4%).
MBS’ hotel business saw a 4.5ppt drop in occupancy rates of 94.8% and average daily room rates of US$414 (-3.3%).
Core adjusted EBITDA margin was at 52.9%.
The latest set of data could offer a read-through for Genting SP (GENS) upcoming 1Q15 results, which could similarly show a drop in VIP volumes and lacklustre performance from its hotel businesses.
Maybank-KE recently upgraded Genting Singapore to Buy with TP of $1.08. Overall, the house believes short-term headwinds have been largely priced in while the longer-term positive catalysts are ignored.