Genting Singapore is down 1.5% at $1.33, its intraday low, after rival Las Vegas Sands (LVS) reported its Marina Bay Sands property’s 3Q12 operating income fell 47.2% on-year to US$166.5 million ($203.1 million), citing increased provisions for accounts receivable and a lower-than-expected rolling-chip win percentage.
“It’s a weak set of results. Apart from the low win rate, VIP volumes were down. If you assume market shares are constant, then the Singapore market was weaker,” an analyst says, adding the results were weaker than he expected. He notes SGD strength also boosted MBS’ results by about 1%-2%. “The Singapore market could be weaker than previously thought.”
GENS’ relatively muted share-price reaction may be due to the stock getting a fillip from a strong rally in Macau gaming stocks after data there was “through the roof,” he says. “People are still bullish on the recovery. So that sort of benefits all gaming stocks at the margin.” The stock is down nearly 13% year-to-date; $1.31, which has acted as support since mid-August, may offer a near-term floor.
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