Analysts at banking group Morgan Stanley say the “asking price” mentioned by the head of the Philippine gaming regulator about the small state casino network “may be too high and buying interest may be low.”
“The expansion of iGaming delivery and e-payment methods is positive, but we need more details,” analysts Pravin Chodhary, Danchi, Jeffrey Mack and Gareth Leung said in other comments on Philippine Entertainment Games Company (Pagco)’s industrial development plans
Chairman and CEO Alejandro Tengco Pagcor said last week that the casino sale is expected to raise about 80 billion PHP ($1.47 billion) because he wants to separate regulations from its operational functions. 슬롯머신
“We are seriously considering privatizing all casinos run by Pagco,” Mr Tengko said. These casino suites operate under the brand Casino Filipino. It includes more than 40 branches and so-called ‘satellite casinos’ and operates in places leased from third parties.
PAGCO said casinos could be bundled when offered to bidders to unlock greater value. The game director also said he hopes to implement privatization during his term, which runs until 2028.
In an earlier note, Morgan Stanley noted that PAGCO’s own-branded casino reported total game revenue of 37 billion PHP ($679.5 million) in 2019.
“Potential PHP 80 billion [sell] prices represent 11 times the corporate value of earnings prior to interest, taxation, depreciation and amortization ratios, assuming “Pagcor’s 2019 GGR of 37 billion PHP has a 20% margin and no debt to its assets,” the agency said.
The total GGR of the site operated by Pagcor reached 15.79 billion PHPs last year, more than half of which came from mass market slot machines, reaching nearly 8.47 billion PHPs.