Philippine license-fee cut improves operators’ earnings, stock outlook

    Published in: Latest IntelligencePhilippine-traded gaming stocks ended the week mixed despite news the state-run industry regulator struck a deal with casino operators to cut license fees, boosting the outlook for both earnings and shares, analysts said.The Philippine Gaming and Amusement Corp. reached an accord to reduce fees by 10 percentage points of gross gaming revenues for operators at Entertainment City. The cuts are temporary.Analysts at Citi welcomed PAGCOR’s decision, saying the higher-than-expected reduction in fees will be a “net positive” to all operators, leading them to raise their forecast for 2015 earnings of Philippine gaming stocks by 3 to 7 percent and to lift target prices by 4 to 15 percent.The U.S. investment bank estimated that the VIP gaming tax will be reduced to 5 to 7 percent of revenue and the mass gaming tax will come down to 17 percent.At present, four operators have been...

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