Inside Asian Gaming

June 2011 | INSIDE ASIAN GAMING 93 Briefs Genting Singapore gaming property Resorts World Sentosa (RWS) a total of S$530,000 for four breaches of its rules. RWS was fined for in some cases reimbursing the entry levy payable by Singapore citizens and permanent residents, as well as for failing to ensure that casino surveillance footage from several cameras was retained for the specific period required by CRA, the regulator said in a statement. “The disciplinary action taken serves to remind casino operators to act responsibly to uphold the integrity of social safeguards put in place by the authorities,” said T Raja Kumar, chief executive of the CRA. Las Vegas Sands’Marina Bay Sands is the only other casino resort to be allowed in the city-state after Singapore legalised casino gaming in 2005 as part of a plan to boost tourism. Genting’s US$4.8 billion Resorts World Sentosa opened its doors in February last year, making it the world’s third most expensive casino complex after MGM’s CityCenter in Las Vegas and Marina Bay Sands. LVS 1Q net revenue hits record US$2.11 billion thanks to Asian operations Net revenue for Las Vegas Sands globally in the first quarter of 2011 was a record US$2.11 billion, an increase of 58.2% compared to US$1.33 billion in the first quarter of 2010. Consolidated adjusted property EBITDA (earnings before interest, taxation, depreciation and amortisation) in the first quarter of 2011 increased 101.0% toUS$745.7million compared toUS$371.0million in the equivalent quarter a year earlier.. The EBITDA performance could have soared even higher—to US$785.7 million—but for a particularly unlucky quarter for the house in the live table games segment said LVS in a filing to the US Securities and Exchange Commission. Consolidated adjusted property EBITDA margin increased 750 basis points to 35.3% in the first quarter of 2011, compared to 27.8% in the first quarter of 2010. Las Vegas Sands’ strong performance in building gross revenues in the first quarter of 2011 was to some extent blunted by its low hold in Singapore and Las Vegas, said Union Gaming Research. In 1Q11, LVS reported total net revenues of US$2.11 billion), EBITDAR (after corporate expenses) of US$699.9 billion and adjusted earnings per share of US$0.37. “We estimate low hold in Singapore and Las Vegas impacted 1Q11 EBITDAR by US$36 million during the quarter, thus using a normalised hold, EBITDAR (post corporate) would have been approximately US$735.8 milllion,” said Union Gaming Research in a note to investors. SJM 1Q11 revenue boost in line with general market SJM Holdings’ 1Q 2011 interim results showed gaming revenue increased 43% year on year to HK$18.141 billion—in line with Macau market-wide growth of 42.9% during the first quarter. Adjusted EBITDA was HK$1.678 billion (up 53% year on year). “We believe the primary driver of the upside to our EBITDA expectations came from better- than-expected margins on the strength (and resulting flow- through) of the company’s mass market business,” said Union Gaming Research. SJM’s EBITDAmargin improved to 9.2% in 1Q11 versus 8.6% in the prior year quarter and 8.5% in the immediately preceding quarter. Adjusted in line with US accounting standards, and including results from SJM casinos managed by outside parties, SJM’s EBITDA margin would have been 30.6%, said Union Gaming. Macau visitor numbers up 11% year on year Macau visitor arrivals increased 10.7% in April compared to the same month in 2010, amounting to 2.3 million inward journeys. April 2011 enjoyed the benefit of one additional weekend day as compared to 2010 (10 versus nine). April 2011 also benefited from an early start to the typical May 1 Labour Day holiday, which began this year on 30th April. In April, visitors from Mainland China accounted for 1.27 million people—54.3% of Macau’s total for the period—up 4.5% year on year. Nearly 40% of the mainland arrivals (495,000) came in under the Individual Visit Scheme (IVS) visa programme. And roughly half of mainland Chinese visitors came from neighbouring Guangdong province. Penalty paid—Resorts World Sentosa LVS—record EBITDA in 1Q 2011 Holding firm—Grand Lisboa helped SJM to grow with the market Full steam ahead—Macau visitor numbers up in April