Genting HK

Genting HK: 50% owned Norwegian Cruise Lines reports 2Q11 results.
Adjusted EBITDA increased 29% yoy to US$123.5m, and the co swung to net profit of US$29.2m from a loss of US$14.9m a yr ago, as revenue increased 19% yoy to US$568.6m. This was driven by the 14.9% increase in Capacity Days due to the addition of Norwegian Epic to the fleet in Jun ’10, along with an improvement in Net Yield of 4.2% arising from higher passenger ticket pricing and increased onboard spend per Capacity Day.
Cost control and scale helped to offset higher fuel cost (+18.1% to US$595/mt vs $508 in 2010) and Net Cruise Cost per Capacity Day increased just 1.1% in 2Q.
NCL contributes ~20% or US$0.11/sh to Genting HK’s adjusted NAV of US$0.54, according to RBS estimates.
The house initiated on Genting HK last wk at Buy with TP US$0.48.