RWS Has No Edge Over MBS

Posted: October 8, 2010 in Uncategorized

Malaysian market has slowed down significantly, while local market has been blocked

Too Simplified A Storyline… About RWS
 
8 Oct 2010 FRI
 
The Lion City main media news highlights a story that concludes their claim of why Genting RWS has edge over Marina Bay Sands, in an overly simplified version.
What happens here is that,
 
– Genting RWS has been using its original Genting Highland casino database for marketing. But there’s signs that RWS is almost stretching the number to the limit. That explains why their 2nd quarter result was so impressive. Going forward it is not the case. 
 
–  Genting RWS (and MBS) are trying desperately to hook Lion City’s local population pool to supplement their casino revenue generation but the scheme has been stopped abruptly by the authority. 

– It is a known fact that Marina Bay Sands has a marketing team that knows very little about this market. They are weak in the premium VIP direct business arena and failed badly in mass market platform. Change of the team will surely see big improvement over the casino performance. Currently MBS has shot their own feet, not because of RWS has the edge. 

– Las Vegas Sands had lost two “big pillars” of its top managment team two years ago, All the success of Las Vegas Sands casino properties were established in the able hands of the two gentlemen. The top team in LV just can’t create any spark or magical touch to any new projects so far. Macau’s lot 5 & 6 is another case in point. 

– It is estimated that RWS’ 2nd quarter major revenue stream was distributed among VIP Gaming (40%), Mass Table Games (25%) and Slots (35%). Going forward, unless the “Luck” (Win%) for VIP premium is continued as well as with doubled turnover volume, it is fairly difficult to grow the overall gaming pie through mass gaming market size available at this juncture. The two casinos are desperately digging deep into the Malaysian pool which has slowed its pace. Analysts who bet big on this stock should take-stock of the game.

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