Morgan Stanley analysts have reduced their 2016 gross gaming revenue assumptions for the Philippines casino market to $1.6 billion, representing growth of 8 percent year-on-year, compared to previous estimates of $1.7 billion.
Excluding City of Dreams Manila, which was in the initial stages of opening in 2015, "same-store sales growth" for Resorts World Manila and Solaire would only grow by 3 percent, said MS Research.
“Our GGR expectations for the three casinos in the Philippines are 17%-54% lower than consensus for 2016 and 2017. Our reduction is mainly due to lower volume growth in the VIP segment.”
In a Bloomberg interview on October 2, Bloomberry Resorts Corp CEO Enrique Razon said the company plans to make provisions for all the unpaid credits it extended to VIP and premium players by year-end.
Razon said Bloomberry, whose stock is the worst-performing major counter in the Philippines this year, expects its losses to narrow as revenue is growing.
MSR said: “We think it's appropriate to compare Bloomberry's level of provisions against the Singapore casinos. Singapore casinos provide credit directly to their VIP players in the absence of junkets while Bloomberry also provides credit to direct VIP players from the Southeast Asia region.”
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