Morgan BellMacau Casinos: Good News for PBL
January 24th 2007 11:47
Publishing and Broadcasting, James Packer’s company, is building three casinos in booming Macau and the prospects for gaming there are great. Stay with me for more.
The news today, 24 January 2007, is that “gaming revenue in Macau surged 23 per cent last year to almost $US7 billion ($A8.87 billion), beating analysts' expectations and boosting the outlook for Publishing and Broadcasting Ltd, which is building three casinos there.”
“PBL shares jumped 25¢ to $20.35 yesterday after Macau's gaming regulator released the figures. Macau is expected to trump the Las Vegas Strip as the world's biggest gaming destination in revenue terms.”
“Las Vegas figures for last year have not yet been released, but most analysts expect they will confirm Macau has taken top spot.”
“Goldman Sachs JBWere analysts said a 17 per cent increase in Macau's VIP gaming revenue to $US4.2 billion was above expectations.”
“This is good news for PBL as its first casino, Crown Macau, will be pitched to the VIP market. The casino development, which includes a 36-storey tower, 220 gaming tables, more than 500 machines and a luxury hotel, is due to open in the middle of this year. In total, PBL and its joint-venture partner, Melco International, are spending $US3.3 billion on the three casino developments.”
“The City of Dreams development, which includes an underwater casino, on the Cotai strip, is expected to open at the end of next year. A third casino will open on the Macau Peninsula in mid-2009.”
“Analysts have been cautious when it comes to valuing the Melco-PBL joint venture because none of the casinos are open.”
This news was published in the online edition of The Age under the title “Macau 23% surge in gaming revenue brings good news for PBL” and was written by Lisa Murray.
Publishing and Broadcasting (ASX: PBL) is an interesting business. It initially incorporated media assets toghether with gaming.
James Packer, PBL’s Executive Chairman, recently sold most of the media assets to a foreign private equity consortium, netting $4.5 billion in cash. This way PBL’s focus will be, for the foreseable future, gaming only. And that for a reason: gaming earns a lot more than media.
PBL is associated with Melco in its pursuit of gaming glory in Macau. It’s also looking for opportunities in other parts of Asia, since the prospects for gaming there are great.
A glance at PBL’s EPS reveals a current figure of 90.7 cents, from 47.1 cents in 2001, representing a compound annual growth rate of 14 per cent, more than twice your money in the bank.
PBL’s current Net Profit is $610.1 million on a margin of 17.2 per cent.
PBL’s Return on Equity is 15.8 per cent, which is good.
Publishing and Broadcasting’s P/E is 22.6 times, which is the sector’s average, while P/B (Book Value: $5.75) is 7 times. These two figures make PBL look expensive at this stage.
PBL’s share price is $20.48.
End
The news today, 24 January 2007, is that “gaming revenue in Macau surged 23 per cent last year to almost $US7 billion ($A8.87 billion), beating analysts' expectations and boosting the outlook for Publishing and Broadcasting Ltd, which is building three casinos there.”
“PBL shares jumped 25¢ to $20.35 yesterday after Macau's gaming regulator released the figures. Macau is expected to trump the Las Vegas Strip as the world's biggest gaming destination in revenue terms.”
“Las Vegas figures for last year have not yet been released, but most analysts expect they will confirm Macau has taken top spot.”
“Goldman Sachs JBWere analysts said a 17 per cent increase in Macau's VIP gaming revenue to $US4.2 billion was above expectations.”
“This is good news for PBL as its first casino, Crown Macau, will be pitched to the VIP market. The casino development, which includes a 36-storey tower, 220 gaming tables, more than 500 machines and a luxury hotel, is due to open in the middle of this year. In total, PBL and its joint-venture partner, Melco International, are spending $US3.3 billion on the three casino developments.”
“The City of Dreams development, which includes an underwater casino, on the Cotai strip, is expected to open at the end of next year. A third casino will open on the Macau Peninsula in mid-2009.”
“Analysts have been cautious when it comes to valuing the Melco-PBL joint venture because none of the casinos are open.”
This news was published in the online edition of The Age under the title “Macau 23% surge in gaming revenue brings good news for PBL” and was written by Lisa Murray.
Publishing and Broadcasting (ASX: PBL) is an interesting business. It initially incorporated media assets toghether with gaming.
James Packer, PBL’s Executive Chairman, recently sold most of the media assets to a foreign private equity consortium, netting $4.5 billion in cash. This way PBL’s focus will be, for the foreseable future, gaming only. And that for a reason: gaming earns a lot more than media.
PBL is associated with Melco in its pursuit of gaming glory in Macau. It’s also looking for opportunities in other parts of Asia, since the prospects for gaming there are great.
A glance at PBL’s EPS reveals a current figure of 90.7 cents, from 47.1 cents in 2001, representing a compound annual growth rate of 14 per cent, more than twice your money in the bank.
PBL’s current Net Profit is $610.1 million on a margin of 17.2 per cent.
PBL’s Return on Equity is 15.8 per cent, which is good.
Publishing and Broadcasting’s P/E is 22.6 times, which is the sector’s average, while P/B (Book Value: $5.75) is 7 times. These two figures make PBL look expensive at this stage.
PBL’s share price is $20.48.
End
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