Inside Asian Gaming

March 2008 | INSIDE ASIAN GAMING 41 Briefs MGM GRAND Macau President Bob Moon stressed that Macau was the“perfect choice”for the event,citing“figures recently released by the Macau Government Tourist Office showing that Mainland China remains the largest source of visitors for Macau, accounting for more than 55% of total visitor arrivals in 2007.” ‘China’s Next Top Model’ is an adaptation of popular US reality TV show ‘America’s Next Top Model’. Crown Macau Snags Market Share Melco PBL Entertainment (Macau) Ltd (MPEL) reported Q4 2007 revenue of US$179.8 million, up from US$17.9 million in the year- ago quarter. The primary cause of the surge in revenue was the start of operations of the company’s first casino, Crown Macau, earlier in 2007. Prior to the arrival of Crown Macau, which targets VIP gamblers, MPEL’s main source of revenue was its string of Mocha Clubs slot venues. Crown’s adjusted EBITDA for 4Q 2007 was $4.2 million, which, according to the company, was held back by an unusually lucky run for its VIP players. “Our expected rolling chip table games hold percentage remains at 2.7%. Rolling chip volume totalled US$8.5 billion for the fourth quarter of 2007. Actual rolling chip table games hold percentage in the fourth quarter (calculated before discounts and commissions) was below our expected level at 2.4%.” By contrast, Wynn Macau’s 4Q results were boosted by an unusually unlucky streak for its players, with rolling chip table games hold reaching 3.1%. During the quarter, Crown Macau’s expenses were pushed up by the recruitment and training of 350 table game staff in preparation for the launch of the property’s new arrangement with junket operator AMA International Limited .The preparation for the AMA agreement also involved a 12-week reconfiguration of Crown Macau, during which gaming capacity was reduced by approximately 40%, and access to food and beverage outlets at the property was restricted, significantly holding back revenue. Thus, while the opening of Crown Macau helped MPEL’s net loss narrow to $36.5 million for 4Q 2007, compared to $53.0 in the year-ago period, the property could have made a much bigger contribution to the company’s bottom line. Following Crown Macau’s implementation of its new arrangement with AMA, its rolling chip volume has embarked on a steady ascent. MPEL CEO and co-Chairman Lawrence Ho commented:“Good progress has been made in the period since our last quarterly report. Core rolling chip business at Crown Macau has continued to make significant market share gains. Crown Macau delivered sequential hold-adjusted EBITDA growth in every month of the third and fourth quarters of 2007,and this trend has continued into the first quarter of 2008 with January’s hold-adjusted EBITDA meaningfully increasing from December levels. February is off to a good start, driven in part by the seasonally strong period which immediately follows Chinese New Year. “It is gratifying to see Crown Macau on the path to reaching its full potential, following our decision over six months ago to execute a reconfiguration of the property to focus heavily on the junket supported rolling chip market segment.This emphasizes the original vision for Crown Macau, and we view our initial performance thus far in 2008 as clear validation of this strategy. “In the fourth quarter,total monthly rolling chip volume at Crown Macau increased from approximately HK$20 billion in October to HK$30 billion in December. In January, total monthly rolling chip volume jumped to over HK$50 billion.January was the first full month of operations that reflected our agreement with AMA International Limited. We estimate that Crown Macau achieved a table games market share of 16% in January, up from 9% in December. Our February table games market share at Crown is estimated to be approximately 18% through February 17th.” Goa’s Maharajah According to the South Asian Post, a new large-scale offshore casino offering ‘no-limits’ tables is set to open in Goa in April. Goa is the only place in India where casinos are legal. The ‘Maharajah Casino’ will be operated by Creative Gaming Solution, a subsidiary of Mumbai-based Pan India Network Infravest Pvt Ltd (Pinipl), the promoter of the Playwin lottery. Pinipl managing director Amar Sinha said “it will be the biggest offshore casino and will be an added appeal for tourists to visit Goa.” Goa, like Macau, was formerly a Portuguese colony (for 450 years until India took over in 1961), and has become a popular tourist destination for both Indians and foreigners, thanks to its beaches, lush forests, and world heritage architecture. “Many Indians who regularly frequented casinos in Kathmandu have been hunting for alternatives in and around India owing to the recent bouts of unrest in the Himalayan kingdom,”said Mr Sinha, and Goa certainly offers an attractive alternative. . The company is expected to earn revenue of around Rs.1 billion (US$25 million) in its first year of operations. Ms Pansy Ho and Dr Flora Zeta at the gala show Goa’s natural appeal