GGRAsia – Philippine Casino GGR owns 85% pre-pandemic by 4Q:MS
Philippine casino GGR owns 85% pre-pandemic in Q4: MS
The Philippine casino industry‘s gross gaming revenue (GGR) could reach 85% of the pre-pandemic level by the fourth quarter of this year, according to banking group Morgan Stanley.
Factors supporting the growth of the Philippines included the “reopening of travel” to Southeast Asian countries in general during the second quarter, “and the easing of Covid control measures from March 2022 “.
In the case of the Philippines, “pent-up demand and election-induced consumption could improve our estimates,” Morgan Stanley Asia Ltd analysts Gareth Leung and Praveen Choudhary added in a Tuesday note, recently referring to the President of this country. elections scheduled for early May.
In the first quarter, for which most Philippine casino operators have yet to report results, Morgan Stanley expects large-scale private sector gaming resorts – including Solaire Resort and Casino (pictured) – in the Entertainment City area of Manila, generated a total GGR of PHP 27 billion (USD 515 million).
That would be up 15% quarter-over-quarter and equal to 68% of pre-pandemic performance in the first quarter of 2019, Morgan Stanley said.
This would likely have been “driven by a stronger recovery in local demand for mass income and slot machines”, i.e. a quarterly improvement of 17% in these segments, and about 82% of what these segments generated in the first quarter of 2019.
Since March 1, casinos have been allowed to operate at full capacityas Metro Manila has been placed under “alert level 1”, the lowest level of countermeasure against Covid-19.
The Philippines has also reopened to foreign tourists, which could help.
National authorities had said in March that the country was to reopen to general tourism from April 1, provided visitors were fully vaccinated.
According to the latest government data, about 265,553 foreigners visited the country from February 10 to April 17, the Philippine News Agency reported on Wednesday.
In another note on Tuesday, Morgan Stanley said that absent a significant travel easing for Macau’s gaming sector, casino markets in Southeast Asia presented stronger opportunities for investors. .
It was on the basis that they had a “policy of living with Covid, unlike Greater China”.
Singapore, a casino duopoly, said in March it would reopen to trapped foreign tourists from April 1.