LAST WORD 62
Looking for silver linings Sharon Singleton
Managing Editor, AGB
It’s a term that’s frequently over-used, but if you were a land-based gaming operator in Asia last year, it truly was an “annus horribilis.”
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rom government mandated closures, to the onerous on-quarter gain in gambling revenue. The company said social distancing requirements on reopening, it had seen strong support from the local mass market through to second waves and continuing travel and is convinced the recovery was underway. Elsewhere in Asia, figures for both Malaysia and restrictions, it doesn’t come much worse than that. Recovery is also painfully slow, with new Covid Cambodia have been surprisingly strong. Locals are clusters popping up and crushing hopes for an imminent not allowed to gamble in Cambodia and the border is mostly shut to tourism, however GGR there was only return to normal travel. However, a deeper dig behind the headlines turns down about 50 percent from 2019. Nagacorp, the operator of NagaWorld in Phnom up some more pleasant surprises which attest to the resilience of the casino industry and its ability to adapt. Penh posted a net profit for the year as a whole, not just Gross gambling revenue in Macau was down just Q4, and said its volumes in the mass market segment over 79 percent last year, but growth is seeing gradual are back to about 95 percent of pre-crisis levels, while signs of accelerating into the second quarter. Despite the figure stands at 69 percent for VIP. The company, which has a the lack of revenue coming in on monopoly within a 200km radius the top line, all but one of the six of the capital, said it had been operators managed to return to supported by the large expatriate positive territory on an EBITDA Gross gambling community in the city as well level in the fourth quarter. as by some visitation from East The territory’s mammoth IRs revenue in Macau Asia. It also benefits from being managed to trim expenses to the was down just over one of the few options available bone, keeping the lights on even for entertainment. as government travel policies 79 percent last year, TheHongKong-listedcompany ensured the customers stayed but growth is seeing said it would support shareholder out. Those restrictions are now gradual signs of loyalty by an “unprecedented” slowly beginning to ease and the payout of 100 percent of profit in industry is looking forward with accelerating into the the form of dividends. Its founder, anticipation to the extended May second quarter. Dr Lip Keong Chen is the largest holiday, which this year will be five shareholder in the group. days instead of the usual three. Malaysia too enjoyed strong Although some of the cut back support from the local VIP market operating costs will begin creeping back into the business as things return to normal, analysts and those who in more normal times may have visited say the operators should continue to feel the benefit from other jurisdictions to scratch their gambling itch. GGR at Resorts World Genting was down about 56 percent improved margins for several years to come. One of the hardest hit jurisdictions in Asia last year last year and analysts are relatively optimistic about the was the Philippines where the properties have only been year ahead, especially as it will finally open its outdoor allowed to reopen on an extremely limited basis with theme park. As the only player in the country when it comes to invites to selected guests and long-term hotel occupants. GGR there slumped almost 90 percent, prompting the casinos and an increasingly strong and diversified nonPhilippine Amusement and Gaming Corp. to consider gaming offering after its Genting Integrated Tourism allowing the casinos to accept online bets from VIP Plan investments, it’s seen as well placed once the players. The creation of the so-called PIGO licenses was pandemic subsides. Although there will be no V-shaped recovery to announced at the end of December, though progress has been slow as regulators tread carefully with their this crisis, which is dragging on longer than anyone predicted, there is light at the end of the tunnel and even move into convergence. Still, Bloomberry Resorts announced that it too turned in the land-based world the major operators look set to in positive EBITDA for Q4, with a 22 percent quarter- weather the storm intact.
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Asia Gaming Briefings | April 2021
