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Read an article from OSK published on September 17, 2010, and take note of the following points:

  • On a normalized basis, its gross gaming revenue of SGD9.2m/day was significantly stronger than the market’s full-year normalized expectations of SGD7.0m to SGD8.0m.
  • Management has upped its visitor arrival target from 13m to 15m for the full year and expects stronger footfall upon completion of the construction on Phase II, which will cost an estimated SGD800m.
  • Management’s visitation targets are certainly higher than our assumptions of 13.5m for 2010 and 16.9m for 2011. However, the current casino patronage at roughly 12.7m p.a on a normalized run rate of 35,000 visitors per day and visitation to Universal Studios expected to rise to 4.4m p.a for 2011, implies a combined visitation of 17.1m p.a, a target that is indeed achievable.
  • We believe that Singapore’s casino market could be worth roughly USD4.2bn for 2010. Recall that the market had only estimated a potential market size of USD3.0bn before the two casinos started operation, which grossly underestimated the market potential.
  • We expect Singapore’s casino market to reach Las Vegas’ USD6bn casino market by 2012.

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