RWS in Singapore is More Diverse than Macau: Says Sanford Bernstein
So far the varied business mix is concerned; Resort World Sentosa in Singapore has an upper hand over Macau casino operators. This has been reported by Sanford C Bernstein Ltd. There is no reason to doubt the abilities of these aforementioned resorts in building well proportionate casino gross gaming revenues which it receives from distinguished players of mass markets. Vitaly Unmansky along with collaborators Simon Zhang and Bo Wen have written in a note that Genting Singapoe has fine business mix & it could generate the stream of strong cash as it is made by market gaming & non-gaming entities
The institution calculates the growth of Genting Singapore to be inclusive one at 9.4 percent from the year of 2015 to 2018 prior to the interest, taxation, and reduction or paying off etc. As a matter of fact, this sort of growth must be known as compound annual. Even this report also quoted product mix of Resorts World Sentosa’s which comprises the theme park of Universal Studios & the Marine Life Park of the same property. These all are the positive sign of an appeal for the mass market. The team of Sanford Bernstein has clarified that the prediction of generating 55 percent-plus of gross gaming revenue is still from higher margin mass. However, non source produce more than 23 percent of Genting’s net revenues. The GGR is just about double than that of Venetian Macao casino resort. These much known resort still continues to have major non-gaming component in Macau.
The brokerage also insisted on the market being precisely concerned about the VIP disadvantages & growing bad debt impairment. Sanford Bernstein has made statement about the company’s tightened credit policy & become more controlled in credit-driven generation of VIP volume. Following benefits of such tapering, the expectation is not ruled out to see steady improvement in the collections of its amounts which are owed as an assets. Genting Singapore has faced a significant loss which could be attributed to shareholders 16.9 million Singapore dollar in the second phase of 2015. In reality, it is better to mention that bad debt impairment was loss SGD 56.6 million also at the second half of the same year.
Morgan Stanley & Union Gaming Securities Asia Ltd has referred to the points of risks to Singapore gambling market from Singapore dollar praising the currencies of adjoining feeder market. If the near term is concerned, we can see sustained VIP headwinds & some threats with relation to currency depreciation in the chief feeder markets. Genting Singapore has still been consistent in remaining the cash generation engine. It has been though influenced negatively by low hold in latest quarter. As per the observation of Fitch Ratings Singapore, gambling casino industry in Singapore & Malaysia carries on to be stable.
