Inside Asian Gaming

INSIDE ASIAN GAMING | September 2011 70 Briefs Regional Briefs Macau gaming revenue jumps 57% year-on-year in August Macau’s gross gaming revenue (GGR) jumped 57% year-on- year in August, according to figures released by the territory’s gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ). Galaxy Entertainment Group—which jumped to number two in the GGR league table in July—maintained its position in August, increasing its market share by 1.3%month-on-month to 20.4%. Market leader SJM saw its share drop by 0.7%month-on-month to 27.8%. Melco Crown Entertainment retained third spot, but its share fell 1.1% in August to 14.2%. Sands China in fourth spot fared much better, dropping only 0.3%. The biggest loser quarter-on-quarter was fifth place Wynn Macau, which saw a 2.2% drop in market share. MGM Macau, which has been propping up the league table all year, was the biggest gainer in August, adding 3% to its share, taking it to 10.9%. Given the large volumes of revenue generated by VIP baccarat, month-on-month market share for the operators can be affected by the arrival or departure to a rival property of a small number of high rollers. Macau’s gaming regulator hints at revenue slowdown in remainder of 2011 Manuel Joaquimdas Neves, director of Macau’s gaming regulator, the DICJ, told the Macau Daily Times early this month that the local casino industry should end 2011 with a year-on-year revenue growth of “above 35%”. That could be a hint that a slowdown is coming. In the first half of 2011, the market has been growing at the rate of 43% year-on-year in 1Q and 46% in 2Q. It used to be said that the fourth quarter of a year tended to be slower in Macau than other quarters. That was on the basis that in the final quarter many Chinese people tend to pay off debts and save even harder in anticipation of the Chinese New Year holidays that generally occur between late January and early February, depending on the lunar calendar. Such downward trending has not been the case in the last two years. In 2009, the quarter-on-quarter growth from 3Q to 4Q was 14%. In 2010, it was 16%. In 4Q 2010, the year-on- year growth was 52%. In 4Q 2009, the year-on-year GGR growth was 50%, although 2008 is not very reliable as a statistical starting point as it was negatively affected by the international credit crisis. Sands China adds US$200 million to Macau syndicated loan facility Las Vegas Sands Corp’s Macau unit is increasing its latest loan facility to US$3.7 billion from an original target of US$3.5 billion, reported Bloomberg . The facility for Sands China Ltd. is expected to close at the end of September, said the person, who asked not to be identified because the details are private. About 10% of the loan was sold in general syndication to around 16 banks, the source said. Bank of America Corp, Bank of China Macau, Barclays Plc, BNP Paribas SA, Citigroup Inc, Commerzbank AG, Credit Agricole SA, Credit Suisse Group AG, Goldman Sachs Group Inc, Industrial & Commercial Bank of China Macau Ltd, ING Groep NV, Sumitomo Mitsui Financial Group Inc, UBS AG and United Overseas Bank Ltd are the global coordinators on the underwritten facility, added the source. Banco Nacional Ultramarino SA, Bank of Nova Scotia, DBS Bank Ltd, Oversea-Chinese Banking Corp. andWing Lung Bank also joined as senior lenders, the person said. Galaxy Entertainment Group reports record results in 2Q and 1H 2011 Macau casino operator Galaxy Entertainment Group (GEG) reported record half-year EBITDA (earnings before interest, taxation, depreciation and amortisation) of HK$1.8 billion (US$230.8million)— up 84% year-on-year In the unaudited results, announced in Hong Kong, the company said it was the 11th consecutive quarter of group EBITDA growth, and the 12th consecutive quarter of EBITDA growth for its Macau peninsula property StarWorld Hotel & Casino. Galaxy Macau—the company’s new resort on Cotai, launched on 15th May—achieved EBITDA of HK$376 million in its first 47 days of operation up to and including 30th June. Adjusted net profit attributable to shareholders more than doubled from HK$0.6 billion to HK$1.3 billion for the six months ended 30th June 2011 after adjusting for an one-off HK$0.8 billion in pre-opening expenses of Galaxy Macau, and also HK$0.2 billion non-recurring, non-cash charges relating to convertible notes, and HK$0.1 billion net loss on buyback of guaranteed notes, “The opening of Galaxy Macau enhanced StarWorld’s position and StarWorld posted a series of all-time records. StarWorld delivered one of the highest returns of any major casino in the world,” said Dr Che-woo Lui, Chairman of GEG. Graphic improvement—Macau’s gaming take keeps heading north Sands China—banks on board Galaxy—12th consecutive quarter of EBITDA growth