Marina Bay Sands 4th Quarter 2011

Posted: February 4, 2012 in Uncategorized

4th Feb 2012  SAT

Casino News Singapore, a special commentary by Professional Ground

Marina Bay Sands 4th Quarter 2011 EBITDA Shows Limitations

Slowing down of both Mass and VIP gaming markets

Marina Bay Sands 4th quarter result isn’t that spectacular, based on any new casino resorts standards.

It’s reported 4th quarter 2011 Ebitda was USD426.9m, which is 39.6% higher than 4th qtr of 2010.  Of which, casino gross revenue is approximately SGD8.88m daily.  MBS’  Ebitda margin (4th qtr) is miantained at about 52.9%.

Apparently it was reported that MBS’ VIP gaming win percentage (%) was at 3.34% of its turnover, which is not bad a result. However, its 4th quarter’s Rolling Chip volume dropped by 36% to USD10.7b.  This figure is very low as compared to major casinos in Macau.  That shows the VIP gaming business has come to bottleneck without Junket operators licensing. That means, MBS’ 4th quarter VIP gaming business revenue is approximately at USD364m a quarter (= USD4m gross daily, before costs and rebates). 

However, MBS’ Slot business is maintaining a 71% revenue portion of the total Mass Gaming business (of approx. USD420m a quarter).  Which means, daily gross revenue of USD4.64m.

That shows a balanced VIP/Mass gaming revenue distribution.

Overall, MBS 4th quarter result is showing a stagnated casino market in this part of Southeast Asia.

Analysts should not hope for too much from the soon to be released Resorts World Sentosa (RWS) 4th quarter result.  It is expected that RWS continues to lag behind MBS on both the mass & VIP gaming arena.

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