Scientific Game

Macau’s Emperor Entertainment confident in prospects despite 8.1% gaming decline

Thursday, 21 June 2018 05:23
Visit us

Macau casino operator Emperor Entertainment Hotel Limited, which runs the Grand Emperor Hotel and Inn Hotel Macau, has declared its future prospects bright despite a 7.1% decline in revenue for the year ended 31 March 2018, including an 8.1% fall in revenue from gaming operations.

Emperor Entertainment declared revenue of HK$1.50 billion for the year, down from HK$1.61 billion 12 months earlier, with gross profit down 9% to HK$958.9 million. Revenue from gaming operations at Grand Emperor Hotel fell 8.1% to HK$1.25 billion with Adjusted EBITDA down 9.4% to HK$448.8 million.

Profit attributable to owners of the company increased 13.6% to HK$393.6 million “mainly due to a decrease of selling and marketing expenses and exchange loss, as well as a revaluation gain recognized during the year, as compared to a revaluation loss in the last year.”

Discussing the revenue decline, Emperor Entertainment pointed to the increased flow of customers to Macau’s Cotai properties as having negatively impacted operations on the peninsula.

“With a raft of new gaming offerings and family-friendly recreations, the new establishments have attracted leisure travelers, who are typically mass- market players,” the company said. “The market share of gaming on Macau Peninsula, especially in the mass segment, was diluted by the competition from new properties on Cotai.”

Emperor Entertainment said that the group’s performance was “inevitably affected” by the Cotai shift with mass revenue down 7.2% to HK$1.29 billion. VIP revenue also declined over the course of the 12 months, down 9.3% from HK$24.7 billion in 2017 to HK$22.4 billion.

The casino at Grand Emperor Hotel comprises 67 mass tables, 10 VIP tables and 172 slot machines.

Despite the results, Emperor Entertainment said it was optimistic about the road ahead given ongoing growth in the broader Macau gaming market.

“Upon the completion of large-scale tourism projects, along with government initiatives to boost infrastructure development, Macau’s position as a global leisure and tourism hub will be further reinforced,” it said.

“On the demand side, sustained growth in Macau’s gaming market is expected on the back of the increase in numbers of Chinese outbound travelers, which is largely driven by the expanding wealth effect and the rise of China’s middle class. The group is optimistic regarding growth prospects for Macau’s gaming market and is actively reviewing growth strategies and value-creating opportunities in Macau.”










What's new

AGTech wins two more bids for China Sports Lottery

AGTech wins two more bids for China Sports Lottery AGTech Holdings Limited has announced that its wholly-owned subsidiary, Beijing AGTech GOT Technology Co., Ltd. (GOT), has won two more lottery hardware bids for China Sports Lottery in Zhejiang Province and Jilin Province, bringing the total number of successful bids for GOT in 2018 to 10 followin... Friday, 20 July 2018 06:26

Grand Lisboa Palace to open in stages, SJM boss reveals

Grand Lisboa Palace to open in stages, SJM boss reveals Grand Lisboa Palace, the HK$36 billion (US$4.6 billion) integrated resort currently being built in Cotai by SJM Holdings, will be opened in stages as the company races the clock to have the property ready before 2020. The project update was delivered by SJM Vice-Chairman, Executive Director and CEO... Friday, 20 July 2018 06:17

Japan’s IR bill likely to become law today after passing Cabinet Committee

Japan’s IR bill likely to become law today after passing Cabinet Committee Japan’s IR Implementation Bill is expected to finally become law today after passing one last hurdle on Thursday. The IR bill, which allows for the development of Japan’s first integrated resorts in three yet-to-be-specified locations, passed through the Cabinet Committee of the House of Council... Thursday, 19 July 2018 23:58

VIDEO: Week in Review

VIDEO: Week in Review Inside Asian Gaming takes a look back at the biggest stories of the past week. Thursday, 19 July 2018 22:50

Current Issue

Moving ahead

Moving ahead A year after the deadly attack at Resorts World Manila, management continues to reinvent the property to recover and meet the challenge from Entertainment City rivals. By Muhammad Cohen | Editor-at-Large   The tragic events of 2 June 2017 at Resorts World Manila sent shock waves across the Phili... Friday, 29 June 2018 01:32

"This is not a drill..." Gaming businesses must plan judiciously for emergencies such as the Resorts World Manila attack, natural disasters and accidents so they can respond effectively when best plans fail. By Muhammad Cohen   Arson at Resorts World Manila a year ago, Typhoon Hato battering Macau last August and the La... Friday, 29 June 2018 01:24

Five signs that your organizational culture is toxic to customer experience

Five signs that your organizational culture is toxic to customer experience IAG explains the importance of company culture in achieving exceptional customer experience and the five signs that your culture might be toxic to your customer goals. By Sudhir H. Kalé, Ph.D.   Numerous studies on customer experience (CX) highlight the crucial role company culture plays in del... Friday, 29 June 2018 01:18

Height of Luxury

Height of Luxury With the opening of its new luxury hotel at City of Dreams in June, Melco Resorts is looking to take control of Macau’s lucrative premium mass segment. By Ben Blaschke   “We’re not just opening a new hotel today, we’re opening a whole new chapter. We’ve built a landmark for Macau and a... Friday, 29 June 2018 01:08