Okada Manila Earnings Margin Improving

Okada Manila’s EBITDA margin appears to be improving on operational changes, table pricing and an improvement in non-gaming amenities, Union Gaming wrote in a note.

“While we have good insight into the strong revenue trends from the monthly press releases, we are particularly encouraged to hear the EBITDA margin is ramping,” analyst John DeCree wrote after meetings with management during G2E Asia. “We aren’t really looking for material margin expansion until after Tower B is completely open in early 2020, however, these early margin improvements could represent upside to our near-term forecast.”

The brokerage said VIP is particularly strong, bucking the regional trend.

“Company management noted discerning VIP customers and junkets beginning to choose Okada Manila over peers in the market given the size and amenities of its VIP rooms.”

It added that customer preference is driving VIP volumes and this type of market share is sustainable. (AGB)