Marina Bay Sands Posed A Weak 2nd Qtr Result

Posted: July 26, 2013 in Uncategorized

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Media extract & professional commentary
26 July 2013  Fri

by:  Professional Ground expert panel 

Singapore Casinos Remain Lackluster

Marina Bay Sands (MBS ) announced a slow growth of its casino business in 2nd quarter, with only a mere 7.5% increase in gross revenue YOY.

Adjusted property Ebitda at USD355m,  7.5% up from last year same period.

Rolling chip volume up by 24.9% at USD 14.3b but rolling chip win percentage remains low at 2.53%. Revenue from VIP business up 31% YOY.

Assessment:
–  The mass market volume apparently hasn’t shown any improvement at all. VIP business is sustaining its casino waging volume.

–  Rolling chip Win % is not viable at below 2.7% level. It could point to poor quality VIP business pool.

–  VIP revenue dropped by 20% compared to previous quarter.

–  Ebitda dropped by 10% compared to previous quarter.

Now operators realized that Japan will be the next casino “Gold Digging” hotspot. Singapore IR is definitely heading for saturation. 

GENTING RWS? 
We suggest that its 2nd quarter result could be much worse than MBS… 

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