Singapore Mass Gaming Market Stagnated

Posted: May 13, 2011 in Uncategorized

Singapore Mass gaming market stagnated

Genting RWS 1st Quarter 2011

News report, Singapore local

13th May 2011

SUMMARY OF PERFORMANCE

Daily gross revenue: SGD8.94m (40% better than Marina Bay Sands)

Compared to, 2nd Qtr 2010: SGD9.6m

3rd Qtr 2010: SGD7.95m

4th Qtr 2010: SGD8.43m

Quarterly Gross Revenue: SGD923m (1st Qtr 2011)

Quarterly Ebitda: SGD538m

VIP Business: 62% of Total casino revenue against Mass gaming 38%

——–

Professional Ground Commentary:

In our view, the following scenario would take place in Singapore IRs,

(1) Marina Bay Sands apparently has loss out to Genting RWS in commanding the casino market share. The first quarter of 2011 has indicated the trends forward. Reasons? Because MBS fails to rally both Southeast Asian and Macau junkets support. Though there isn’t any license granted for junkets to operate in Singapore, there are not short of Pseudo junkets already in the two casinos.

(2) That going forward, VIP gaming would continue to dominate casino landscape, above 60%. By now, it is obvious that the Mass gaming market has stagnated for the time being. According to reliable source, traffic going to Macau from Singapore has again increase, after one year of lull period after the two IRs opened shop.

(3) It is noted that local participation rate to the casinos has gradually reduced, since 2011. Malaysian traffic has also tapered off…

(4) So, the forward projection for combined Ebitda for two Singapore casinos could be in the range of SGD3.3b – SGD3.5b; far from expectation of those overly optimistic analysts.

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Comments
  1. Eric Toh says:

    I like the analysis. It is TRUE that Singapore casino market is not that big after all. The Pseudo junkets are operating in casinos under cover. Poor thing the government still dunno. Adelson making noise …

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