In a recent report by First Metro Investment Corp, the Philippine gaming market is expected to continue its decline, in line with the slowdown of gaming activities in Macau.
In a report, FMIC said the Philippine gaming market is still highly correlated to the gaming market in Macau. “Listed Philippine casino and hotel operators have seen their share prices decline by more than 50 percent year-to-date” the report said.
Local casino operators are still optimistic for 2016, despite the current environment. City of Dreams appears to remain on a ramp-up stage and expected to post a profit as it increases revenues from the gaming and non-gaming segments. Solaire operator Bloomberry expects an earnings recovery by 2016 as it provisions the unpaid credits granted to VIP players by year-end.
“Both gaming and retail operations will be in full blast next year so a revenue boost is anticipated,” FMIC said. However, optimism for local operators is not extended to Resorts World Manila “We expect decreasing market share for Resorts World Manila in Paranaque as gamblers transfer to the Entertainment City complex. These integrated resorts have started to alter strategy by growing the revenues of the mass segment. However, this shift will generate lower but stable revenues in the long-term.”