Gaming takes lead

Casino stocks surged after the Philippine Amusement and Gaming Corp. said gaming revenue could increase 20 percent this year amid China’s anti-corruption crackdown which has curbed revenue in other parts of Asia. Stocks of Bloomberry Resorts Corp., which operates the Solaire casino in Manila, jumped 8 percent at the 3:30 p.m. close of trade, the steepest rise since September 2013 and the biggest gainer on the Philippines Stock Exchange Index.     Melco Crown Philippines Resorts Corp., operator of City of Dreams Manila, soared 8.8 percent, ending a three-day slump, while Travellers International Hotel Group, which runs Resorts World Manila, posted its first gain in eight days.

First-half gaming revenue at the country’s casinos increased by 16 percent to $1.4 billion, according to Pagcor chairman Cristino Naguiat. There’s a “good chance” it will reach $3 billion this year, he added. China’s crackdown on graft has dampened gaming revenues in Asia, with Macau posting a 37 percent drop in the first half of the year as the campaign kept away Chinese gamblers. Genting Singapore Plc has also been hurt.

“It’s proof that the Philippines has a good mix of foreign markets and that there are many who really want to come to the Philippines,” Naguiat said.        “Bloomberry is raking the numbers in, while Melco has been steadily bringing in the people,” Naguiat said, adding that it’s getting tougher for tourists to get hotel rooms at the resorts. Tourist arrivals in the Philippines increased 8.2 percent to 2.23 million in the first five months of this year, with many coming from South Korea, who accounted for 24.5 percent of the total, followed by the U.S. and Japan, according to official data. China is the fourth largest source of tourists, with a 7.1 percent share.

Philippine gaming revenue could have been higher if not for China’s anti-graft campaign, Naguiat explained. The nation’s gaming revenue rose 14 percent to $2.5 billion last year from 2013. Premium Leisure Corp., among Melco Crown’s Philippine partners, posted a one-month high of 3.1 percent. Alliance Global Group Inc., parent of Travellers, gained 1.6 percent. Belle Corp. gained 3.1 percent, the biggest advance in three weeks, while Leisure & Resorts World Corp. increased 2.1 percent to a three-week high. 

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