Halister News

(Bloomberg) -- Outlook for Philippine gaming sector has turned “markedly better" in near term, defying concerns over new supply with entry of Okada Manila, Aaron Salvador, analyst at Deutsche Bank, writes in Aug. 8 report.

• “Not only has supply (capacity) growth been hit but gaming revenue is expanding faster than expected," allowing some operators to benefit disproportionately from the misfortunes or missteps of competitors
  • Delay in Okada Manila’s timetable has led to more gradual and modest impact on industry capacity while top-level management changes in co. may lead to delays in major strategic decision
  • Arson/robbery incident in Travellers’ Resort World Manila will result in reduced capacity near term and could have implications for its expansion plan
• Gaming revenue growth ex-Okada Manila accelerated to 37% in 1Q, aided by improved access to Entertainment City and better China-Philippine relations
  • Industry gross gaming revenue to grow 22%/25% for 2017/2018 from 19%/12% previously
• Raises Bloomberry to buy from hold; PT to 12.50 pesos from 6.90 pesos
  • Raised Melco Resorts Philippines to buy from sell; PT to 10.60 pesos from 3.10 pesos
  • Cuts Travellers to sell from hold, PT to 2.70 pesos from 2.90 pesos, citing potential lingering impact of its robbery/arson incident

To contact the reporter on this story: Ian Sayson in Manila at isayson@bloomberg.net To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net Margo Towie