Tiger Airways breaks streak of losses with $20.8m profit
Finally, after 6 quarters in a row.
According to OCBC, Tiger Airways finally turned in a profitable quarter, after reporting six consecutive quarters of losses. For 3Q13, the group saw revenue jump 47.1% YoY
(+25.9% QoQ) to S$247.7m following increases in passenger demand, outpacing the growth in operating expenses, which grew 26.7% YoY to S$229.8m (+12.4% QoQ).
Here's more from OCBC:
This led to an adjusted operating profit of S$20.8m for the quarter versus a loss of S$9.8m and S$7.9m for 3Q12 and 2Q13 respectively.
The turnaround for the Group was largely attributed to the stellar performance by Tiger Singapore during the quarter as Tiger Australia continued to suffer yield deterioration from intense competition.
We view this set of results favourably as revenue growth met our expectations, and TGR’s first net profit validates our turnaround view for 2H13.
We will be speaking to management later this morning but raise our fair value from S$0.81 to S$0.86 in the meantime.
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