Genting SP

Genting SP: Negative read-through from MBS 1Q results
- Latest weak set of quarterly earnings from Marina Bay Sands (MBS) could set the tone for Genting Singapore's upcoming 1Q16 results in mid-May.
- For 1Q16, MBS cashed in lower adjusted EBITDA of US$274.9m (-33.8%, -18.7% q/q) as gross revenue tumbled to US$603.7m (-23.1% y/y, -14.2% q/q), mainly hurt by the stronger USD and weak VIP segment.
- Overall, core EBITDA margin for MBS narrowed to 45.5% (1Q15: 52.9%, 4Q15: 48.1%).

Historically, profitability for Genting Singapore lags behind MBS due mainly to weaker operating metrics. Maybank-KE last had a Hold rating on the counter with TP of $0.78.