Singapore's GGR is shrinking
Gaming activity in Singapore has somewhat slowed down. Sanford C. Bernstein brokerage company indicated in the financial report that the Gross Gambling Revenue (GGR) for the entire 2018 in Singapore will decrease by 2.4% compared to last year and will be $4.53 billion.
Bernstein analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu predict that the total revenue of the VIP segment of Las Vegas Sands, Marina Bay Sands and Genting Singapore Resorts World Sentosa will be only $ 1.68 billion this year. This figure is almost $ 2 million lower than last year ($1.811 billion).
Analysts added that GGR in the mass market will amount to $ 1.687 billion, which is 3.8% less than in 2017. The only increase in profits is predicted in the slot machines segment - by 8.9% to $ 1.142 billion.
Experts added that Singapore is a steadily growing market with significant cash flow generation. The statements say that 2014 was the best year for the gambling business in Singapore in terms of GGR. Since then, there has been a steady decline in gross revenue, which in 2014 amounted to $ 5.55 billion.
Analysts also said that, according to their estimates, over 50% of the VIP segment are Chinese players. Thus, in 2015, the growth of the Chinese economy, along with the anti-corruption campaign, had an impact on the VIP segment of Singapore.
Singapore's gambling business information was included in a larger report on Las Vegas Sands (LVS). The company controls Sands China Ltd., a casino operator in Macau, and is working on obtaining a license in Japan. Bernstein claims that LVS is more affected by Asian markets, since 58% of the company's profits come from Sands China and 32% from Marina Bay Sands.
Analysts predict that revenue for Las Vegas Sands will grow about 6% by 2022.
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