Inside Asian Gaming

inside asian gaming June 2014 44 Leven Departing LVS Michael Leven is retiring as president and chief operating officer of Las Vegas Sands Corp. The company said the veteran hotelier will leave when his contract expires the end of this year, concluding a five-year run that saw LVS emerge from the 2008-09 financial crisis to amass a US$60.2 billion market capitalization, the highest in the industry. During his tenure, NYSE-listed LVS took its market-leading Macau operations public on the Hong Kong Stock Exchange, significantly expanded its footprint in Macau with the opening of Sands Cotai Central and opened Marina Bay Sands in Singapore. More than 75% of the company’s industry-leading revenues come from Macau and Singapore. “I’m grateful to Sheldon and his family for allowing me to help him lead the company during such a tremendous period of growth,” Mr Leven, 76, said in a statement. “For me, this is truly a storybook ending to a more than 50-year career in the hospitality industry. I wouldn’t want it to end any other way.” Mr Leven was a retired hotel company executive and an independent board member when Sheldon Adelson asked him to become president in 2009 after firing longtime President Bill Weidner during a management dispute. Mr Leven agreed to a contract extension in 2011. A committee of the company’s board will conduct a search for a new president. Mr Leven’s departure has fueled speculation that Mr Adelson, who is 80, might step down as CEO. Last month, The Wall Street Journal reported the billionaire was considering bringing in a new chief executive when Mr Leven leaves. But Mr Adelson, who is also chairman and controlling shareholder, was quick to quash it, quoting Mark Twain: “The rumors of my demise have been greatly exaggerated,” he said. “We have taken an important leadership position in the gaming and hospitality industry, and I plan on spending year after year building on that success,” he said. “I am intently focused on building on the momentum we have established over the past several years.” Forbes ranks Mr Adelson the world’s ninth richest individual with a net worth of US$36.2 billion. He and his family hold roughly 53% of LVS. Mr Leven’s departure will leave President of Global Gaming Operations Rob Goldstein, 59, as the company’s longest-serving executive after Mr Adelson. CFO Ken Kay left last July. Chris Cahill resigned in March as executive vice president of global operations. US Drives First-Half Gains for Aristocrat Aristocrat Leisure posted a 9.1% increase in after-tax profit for the first six months of 2014, driven by strong growth from its operations and new unit sales segments in the US, new sales in its home market of Australia and a fivefold increase in online revenues. The ASX-listed slots and systems giant (ALL) generated A$57.4 million in profit after tax on revenue that was up 7.1% over H1 2013 to $412.5 million on a reported currency basis. Diluted earnings per share of 10.4 cents was 9.5% higher than the prior year period. Operating cash flow was up more than 33% to $61 million, and the company will pay an interim dividend of eight cents per share, a 14% increase over the first half of 2013. “Aristocrat made demonstrable progress in its product-led, share-taking strategy,” the company said. “Across key markets, the Group closed portfolio gaps, better targeted game development and technology resources at key segments and improved front-end sales execution.” Notably, the company’s share of the US slot operations market increased 18.6%, with a 6.1% increase in average fee per day compared to the first half of 2013. Gains were also achieved in outright sales in the US and Australia. The company also noted “accelerating momentum” in its online business. Profit growth will be “strong” over the 12 months to 30th September, with performance “weighted to the second half,” said Chief Executive Officer and Managing Director Jamie Odell, “reflecting the carry-forward of a higher gaming operations installed base, strengthening fee per day and the impact of a full pipeline of compelling new game content.” He added, “We expect continued ship-share momentum and bottom line benefits, particularly in the US and Australia, from the step-up in D&D investment to be more evident through the second half of the year.” Echo, Crown, Chow Tai Fook Make Brisbane Short List The government of Queensland has named Brisbane incumbent Echo Entertainment, rival Crown Resorts and two Chinese companies to its short list for a casino license in the capital of the Australian state. Jewelry giant Chow Tai Fook and Shanghai-based property consortium Greenland Investment complete the list, which was announced on the heels of the state’s tentative approval of two other Chinese investment groups—Aquis at the Great Barrier Reef and ASF Consortium—for megaresorts totaling more than A$15 billion and located, respectively, on the state’s far northern coast INTERNATIONAL BRIEFS Michael Leven Aristocrat Leisure CEO Jamie Odell