GGR to grow in the Philippines

A new report revealed that the Philippines’ gross gaming revenue is set to grew 26 percent year-on-year.

Philippines.- Morgan Stanley estimates that during the second quarter of the year, gross gaming revenue in the Philippines is expected to grow 26 percent when compared to the same period in 2016. As the brokerage said, the good results are boosted by proxy betting attracting foreign VIP.

As the brokerage announced, the growth is also pushed by a low sequential growth in mass, as AGBrief revealed. EBITDA (earnings before interest, taxation, depreciation and amortisation) will also experience an increase during this period, as Bloomberry and Melco will contribute with the numbers. “We expect industry EBITDA to grow 8 percent quarter-on-quarter and 27 percent year-on-year to US$138 million in 17Q2, driven by Bloomberry and Melco, partially offset by Travellers,” said Morgan Stanley.

Whilst the number of visitors also grew 13 percent year-on-year to April, the entity noted that the attack that happened inside the Resorts World Manila that led to the death of 37 people reduced the GGR by US$33.6 million to US$39.5 million last month, even if it is expected that the business will recover this month.

Last month, it was also revealed that the Philippines is on track to become the largest entertainment industry of the Association of Southeast Asian Nations, as it’s set to surpass Singapore by 2019. The brokerage confirmed that the Asian country has favorable policies, like proxy betting, and strong tourism to drive foreigners’ revenue. “Local spending is backed by a strong local economy,” said Morgan Stanley. As Okada Manila will add more than US$1.2 billion of gross gaming revenue (GGR) to the Philippines’ market by 2019, the local market is set to hit US$5 billion in 2020, which will also leave Singapore in second place.