Wednesday 10 October 2012

Genting Malaysia - Daily win/machine at RWNY continues to rise


- Daily win per machine at Genting Malaysia Bhd’s (GenM) “Resorts World New York” (RWNY) has improved QoQ in 3QFY12. 

- According to gaming reports provided to the New York Lottery Association, win per machine at RWNY rose 3.2% from an average of US$375/day in 2QFY12 to US$387/day in 3QFY12. 

- So far this year, the highest monthly average win per machine was recorded in September. Average win per machine was US$397/day in September, which was 4.7% higher than the average of US$379/day in August.  

- Compared to its peers, RWNY has performed better. RWNY’s average win per machine of US$397/day in September was 60% better than the average of US$248/day for the industry.

- RWNY’s impressive daily win per machine in 3QFY12 was partly driven by a higher amount of bets. Credits played at the machines climbed 4.8% from US$3.17bil in 2QFY12 to US$3.32bil in 3QFY12.

- RWNY’s daily win per machine has averaged US$374 in 9MFY12 compared with our assumption of US$360 for FY12F. However, we are keeping our assumption for now. 

- We believe that RWNY’s daily win per machine would weaken as the weather becomes colder in New York in 4QFY12. We have assumed a daily win per machine of US$365 for FY13F. 

- GenM’s operations in the US (Miami and New York) accounted for 5% of the group’s EBITDA in 1HFY12. 

- Excluding construction cost overruns, RWNY recorded an EBITDA margin of 42.7% in 2QFY12 and 23% in 1QFY12. 

- We maintain a BUY on GenM for its growing global casino presence. The group’s operations in New York and Britain have been recording positive casino patronage while  “Resorts World Genting” has been enjoying a higher volume of VIP business.    

Source: AmeSecurities

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