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  • mrtaxx mrtaxx Sep 11, 2013 10:34 PM Flag

    Macau Booms, Singapore Slows, Japan Waits


    Macau Booms, Singapore Slows, Japan Waits

    Posted on September 11, 2013 by This Week in Gambling

    IB Times – The Chinese gambling haven of Macau is booming as VIPs spend cash more heavily and rapidly, while Singaporean gamblers slow down and Japanese politicians back groundbreaking casinos, according to an industry report by Citigroup Inc. (NYSE:C) Monday.

    In Macau, record revenues in August and March earlier this year could help the city achieve revenue growth of 17 percent for 2013, or $44 billion for the year overall.

    Fresh infrastructure, like a new intercity railway completed in December 2012, or the new Chimelong casino due in late 2013, will attract more visitors from China, who represent the vast majority of Macau’s gamblers.

    Macau’s success this year and revenue growth forecast of 17 percent compares favorably to Las Vegas’ projected revenue growth of 2 percent for this year as well as 2014, according to Citi analysts.

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    • Sounds like MPEL is the winner then - pure Macau play.

      S'pore govt been taking advantage of SA - getting all the nice taxes and at the same time screwing him with restrictions. No wonder S'pore is so rich - they sure know how to screw people! LoL

      Sentiment: Buy

    • This needs some 'splain'n.

      It's fashionable these days to characterize Singapore this way... eg: "Singaporean gamblers slow down", per your post's quote.

      The reality is that "VIP volumes" have been booming right along all during Singapore's recent economic softness.

      Still, it's a fashionable quote because the mass market revenues in the 2 Singapore IRs have been sluggish, and the rate of growth of the ancillary attractions in those resorts (RWS and MBS) have also slowed. Similarly, because of a spate of "bad luck", Marina Bay Sand's VIP revenues have remained flat even as VIP volumes (eg: "drop") have surged... by 64% in Q4, 42% in Q1, and 26% in Q2 (essentially slowing from "fabulous" to "great").

      Why does this matter? Because the greater proportion of Singapore's mass market gamblers are locals while the greater proportion of VIP gamblers fly in from abroad. Anybody who's been paying attention to MBS's promotional efforts lately would notice that it's heavily weighted toward setting up global marketing connections to essentially funnel VIP business into MBS. That's where they're seeing their exceptional volume growth, and that's why Singapore's sluggish economy is having little impact on it.

      MBS remains as one of LVS's "hidden potential" elements as we go into the next couple of earnings reports... because the volumes are there, but the luck isn't. Normal luck would have increased MBS's EBITDA by between $50 and $110 million over the past 3 quarters...

      ... so just imagine what GOOD luck in Q3 at MBS could do in terms of getting the retail investor off the fence and into LVS stock.


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