Philippine casino industry likely to lose steam in Q3 – MS

There is likelihood that the Philippine casino industry has lost its steam in July to September 2017 period compared to the previous quarter.

International financial brokerage Morgan Stanley made this comment in a memo on Sunday as it sees gross gaming revenues declining in the third quarter. The only consolation for investors is that the four integrated resorts in Manila will see higher revenues than the previous year.

Casinos at Entertainment City include the Solaire Resort and Casino, operated by Bloomberry Resorts Corp; City of Dreams Manila of Melco (Philippines) Resorts Corp; and Okada Manila of Tiger Resort Leisure and Entertainment Inc. A property by Travellers International Hotel Group Inc is expected to be completed by the fourth quarter of 2020.

Excluding Okada Manila, Morgan Stanley estimates an 8 to 10 percent quarter-on-quarter, gross gaming revenue decline for the three integrated resorts. This figures translates to between PHP23.7 billion (US$464.4 million) and PHP5.8 billion (US$112.97 million)