PH GGR to grow 26 pct year-on-year in 17Q2: MS

Philippines gross gaming revenue is expected to grow 26 percent year-on-year in 17Q2, driven by proxy betting attracting foreign VIP revenues, along with a low sequential growth in mass, says Morgan Stanley.

Industry EBITDA is also expected to see growth in the quarter, driven by Bloomberry and Melco, but partially offset by Travellers, it said.

“We expect industry EBITDA to grow 8 percent quarter-on-quarter and 27 percent year-on-year to P7 billion in 17Q2, driven by Bloomberry and Melco, partially offset by Travellers,” said the brokerage.

Visitor arrivals in the Philippines also grew by +13 percent year-on-year to April.

The brokerage however notes that the June 2 attack on Resorts World Manila may have reduced market GGR by around P 1.7 to 2 billion (US$33.6 to US$39.5 million) in June, but added that it expects business for the overall market to recover in July.