Philippines is set to emerge as the largest entertainment market in ASEAN – surpassing that of Singapore due to favorable policies and infrastructure development, says Morgan Stanley.
“…the Philippines has favorable policies (allowance of junkets, proxy betting and so on) and strong tourist arrivals to drive foreigners’ revenue. Local spending is backed by a strong local economy,” noted the brokerage on Monday.
Furthermore, with Okada Manila set to add US$1.2 billion of GGR to the market by 2019, the overall Philippines market size is expected to hit US$5 billion in 2020, surpassing that of Singapore, says the brokerage.
Risks however, relate to an uncertain regulatory environment, the enforcement of tightening measures similar to other gaming markets, and muted EBITDA growth in 17H2 and 2018 as Okada Manila takes share.
Morgan Stanley says it sees Bloomberry as its top pick, “attributable to a stronger balance sheet and cash flows with potential dividends, and a larger landbank for future expansion.”