Marina Bay Sands Poor Show for 3rd Qtr 2012

Posted: November 3, 2012 in Uncategorized

Latest Singapore media extracts

No Big Junkets, No Growth On VIP Biz

This is the golden rule of casino operation.

No casino on earth could single handedly grow its VIP business (high-rolling) without the help of strong and big funding Junkets.

Singapore Marina Bay Sands (MBS) once again proves this universal principle.

MBS 3rd quarter turned in poor result for its casino business gain, causing its Ebitda to drop by 37% to USD261m (as compared to USD414m last year), operating profit drop to 41.7% as compared to 52.2% same period last year.

MBS high roller chip turnover Win percentage has drop to 1.79% (as compared to 2.69% last year)! Bad credit amounts to USD15m.

The main reasons:
– Weak VIP business growth due to operational weakness – lacking strong network (and funding) Junket operators.

– As a result its Rolling Chip turnover could not hold a higher Win percentage in order to improve the odds for the house. A Win % of 1.79% is extremely poor for any VIP rolling chip program.

– Lacking a strong and continuous growing mass market. Singapore jurisdiction imposed greater control measures on local casino visitation.

Advice from Professional Ground?
(It is unlikely that RWS casino could go against the tide and perform well.)


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s