Genting SP

Genting SP: (S$0.675) Negative read through from MBS lacklustre 4Q15
Marina Bay Sands (MBS) released a lacklustre set of 4Q15 results that may offer a negative read-through for Genting SP's upcoming 4Q15 results.

MBS' adjusted 4Q15 EBITDA tumbled to US$338.2m (-35% y/y, -13% q/q), while total gross revenue fell to US$703.9m (-16% y/y, -6% q/q).

The gaming business saw lower-than-expected rolling chip win percentage of 2.39% (3Q15: 2.61%), while rolling chip volume remained at US$10.1b (+0.7% y/y, -12% q/q), reflecting lacklustre VIP business.

Meanwhile, the mass market held relatively steady, with slot handle volume of US$3.3b (+6% y/y, -3% q/q) and hold rate of 4.4% (4Q14: 4.8%). However, non-rolling chip drop fell to US$976.4m (-11% y/y, -9% q/q), with win rate at 28.5% (4Q14: 26.7%).

MBS’ hotel business saw a drop in revenue to US$88.3m (-4% y/y, -11% q/q), hit by the slowdown in visitor arivals.

Overall, core adjusted EBITDA margin for MBS tumbled to 48.1% (3Q15: 51.9%, 4Q14: 61.8%).

Maybank-KE last had a Hold rating with TP of $0.78.