Resorts World Manila’s gaming license suspension and predicted negative impact on visitation once the suspension is lifted will see gross gaming revenue fall by 14.2% year-on-year in 2017, according to Malaysian investment bank Maybank Kim Eng.
In a feature report released this week, Maybank analyst Rommel Rodrigo predicted it could be another month-and-a-half before RWM’s gaming areas open for business while “the adverse long-term impact on client sentiment and visitations will linger for the next two to three years which could force the RWM management to change their business strategy.”
The report estimates damage to the property of between Php600 million and Php1 billion, including around 500 slot machines impacted with cost per machine of around US$20,000.
As a result, Maybank says it has cut its GGR forecasts by 23% in 2017 (based on previously forecast GGR growth), by 29% in 2018 and by 33% in 2019 with gaming turnover declines of 14.2% this year and 2.5% in 2018 before climbing 9% in 2019 year-on-year from its reduced 2018 level.
The report also notes that, “the nearest comparison in terms of a drop in GGR by the same group was back in 2003 in Genting Highland Malaysia due to the severe acute respiratory syndrome or SARs, where GGR fell by ~10% year-on-year.”
Resorts World Manila averages daily revenue of around Php60 million, with owner Travellers International Hotel Group reporting 2016 gaming revenue of Php23.6 billion.
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