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Philippines – Attack on Resorts World Manila to force drop in GGR of 14.2 per cent

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Malaysian investment bank Maybank Kim Eng believes that the attack on Resorts World Manila in the Philippines and its temporary gaming license suspension will see GGR drop by 14.2 per cent year-on-year.

Maybank analyst Rommel Rodrigo believes the reopening of Resort World manila’s casino could be six weeks away.

He said: “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.”

He believes the attack, which left 37 people dead, would cost the operator between Php600m and Php1bn. It would have to replace around 500 slots at an average cost of around US$20,000 per machine.

Maybank has slashed its predictions by 23 per cent in 2017, by 29 per cent in 2018 and by 33 per cent in 2019 with expected falls in GGR of 14.2 per cent in 2017 and 2.5 per cent in 2018 before increasing nine per cent in 2019 year-on-year from its reduced 2018 level.

Resorts World Manila generates daily GGR of around Php60m. In 2016 its GGR was Php23.6bn.

The report said: “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 per cent year-on-year.”

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