Can Singapore IR Casinos Do As Good?

Posted: April 30, 2010 in Uncategorized

30th April 2010

CAN SINGAPORE IR CASINOS DO AS GOOD…

Who says that a Singapore IR could recoup all investment in 5 years?

If this is what Sands China (Sands & Venetian Macau) could only do in a year in Macau (the above figures should be earning after tax), the Land of huge volume of visitors / gamblers / VIP high-rollers and records breaking casino revenue… Will the two Singapore IR casinos outshine the rest?

Instead of providing answers all the time, Professional Ground casino panel would like to drop some questions for readers and analysts to ponder.  Sometimes, asking right questions is more beneficial than just throwing answers around…

Question (1):  Will IR casinos generate consistently very high volume gaming turnover (and wagers) in order to derive at the highly expected (or hoped for) EBITDA? 

Question (2):  Is Singapore IR gaming landscape a truly “balanced” yet high growth high-roller & mass market environment?

Question (3):  Can the IR casinos each do better than Sands & Venetian Macau’s revenue performance?

Question (4):  Do you really logically think that with the opening of Marina Bay Sands, that IR casino patrons will grow by two folds or more? i.e. More gaming tables supply = more players.

Question (5):  This is a “long question”… Do you know on what level of EBITDA margins that the IR casinos have to achieve consistently in order to convince you to believe that an IR’s total investment (including syndicated loans & interest repayment) can be recouped in 5 years?  Why not 10 years or more?  Do you know what’s the industry-wide EBITDA margin sustainable as in the case of Macau? 

Question (6):  Optional.  Do you know where’s the 5 plane-loads of 747s bringing high-rollers are coming from?

(Please take your own time to ponder over the questions and we are not responsible for any stress induced in the process.)

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