- 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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