Results are in for the first quarter of a fully operational Resorts World Sentosa and they point to a $2.5 billion gross this year, $1.5 billion in cash flow and an ROI of 32% at the $4.74 billion metaresort. J.P. Morgan‘s Joseph Greff describes the 58% profit margin as “much better than anything experienced in U.S. markets (to our knowledge).” With all four of its hotels up and running, Resorts World grossed $632 million last quarter, more than withstanding the challenge posed by Marina Bay Sands‘ opening.
Sheldon Adelson‘s Singaporean pleasure palace is (conservatively) projected to gross $427 million and generate $189 million in cash flow next quarter. An expected 44% profit margin is nothing at which to sneeze — and is roughly 100% better than Las Vegas Sands has been doing in Pennsylvania. Unlike Sands Bethlehem, the company’s Singapore venture was a high-cost/high-risk gambit that is paying off handsomely. Looking to next year, when Marina Bay Sands will be fully operational, Morgan analysts are mapping a $2.1 billion gross for Adelson, with $964 million in cash flow, giving the $5.7 billion resort a 17% ROI … the sort of return not seen in on the Strip since the opening of Paris-Las Vegas in late 1999.
All the casino analysts should be shot.
They all have a Sell on Resort World Sentosa. I remember while watching the news on TV about 3 weeks ago the running message at the bottom of the screen says Citibank now has a top Sell on RWS.
RWS is completely different from Marina Bay Sands. They have existing clientele in Singapore ( Star Cruises ) and Malaysia (Genting ). MBS is now trying to steal some of their clientele.