Inside Asian Gaming

February 2012 | INSIDE ASIAN GAMING 47 Briefs The stock closed its first day of trading, 8th February, at US$15.39, valuing Caesars at US$1.92 billion. The price almost doubled earlier in the day, tripping circuit breakers, while the volume was more than six times the number of shares sold in the offering. Caesars raised $16.3 million selling less than 2% of its shares at $9 each. That compares with the US$531 million IPO scrapped in November 2010. The new offering paves the way for the sale of additional shares by investors in Caesars’ 2008 buyout, led by Apollo Global Management LLC and TPG Capital, and the biggest in history for a US casino. Owners may seek to sell stock valued at more than $500 million based on today’s closing price. “The float is small, so not too much surprises me”about the stock gain, David Bain, a Newport Beach, California-based senior analyst at Sterne Agee & Leach Inc., said in an e-mail.“Where shares trade today is likely not a good benchmark for future Caesars valuation.” Caesars, trading on the Nasdaq Stock Market under the symbol CZR, originally offered the shares for US$8 to $10 apiece. The Las Vegas-based company priced in the middle of the range, selling 1.81 million shares, according to a statement. Existing Caesars investors may sell 34.7 million shares after the IPO, according to the prospectus. That gives firms such as Paulson & Co., the hedge fund run by billionaire John Paulson, a chance to exit and potentially return cash to investors. Paulson & Co., which owns 9.9%, has the right to sell 12.4 million shares. Shareholders including Goldman Sachs Group Inc. (GS) and Deutsche Bank AG have the right to sell 22.3 million shares. Apollo and TPG didn’t plan to sell shares in the IPO and aren’t among the funds that have registered for additional sales. Caesars pulled a registration filing to sell as much as $500 million in shares following the IPO, a person with knowledge of the matter said this week. An amended filing for the offering on 6th February didn’t mention the $500 million registration. “They weren’t going to be able to get anything done unless they did an unbelievably small offering,” said Chad Mollman, an equity analyst at Morningstar Inc. in Chicago. “There’s a huge overhang on the stock” because of potential future sales, Mr Mollman said. TCS JOHNHUXLEY chairman Bertil Knutsson given lifetime award Bertil Knutsson, Chairman of gaming equipment supplier TCS JOHNHUXLEY, was given an Outstanding Contribution Award at the 5th International Gaming Awards (IGA) held at the Sheraton Park Lane Hotel in London on the eve of the ICE Totally Gaming trade show last month. Past recipients include Dr Stanley Ho and Andrew Love, the Executive Chairman of the Ritz Club Casino in London. The award recognises Mr Knutsson’s influence on the gaming industry. His early career involved boxing promotion with bills including world heavyweight champion of the late 1950s and early 60s Sonny Liston. He also promoted other sporting events such as appearances by The Harlem Globetrotters and World Championship Tennis tournaments including legendary players such as Björn Borg, Stan Smith, Arthur Ashe, Ilie Nastase and Rod Laver. His start in the gaming industry came in 1959 when he began operating casinos in Sweden, before moving into the international market in the 1980s. It was at this time he invented the Chipper Champ chip sorting machine—which changed the face of gaming floors worldwide and still continues to be a leading product in the industry. In 2001 with his partners, Mr Knutsson formed a company introducing Ladbrokes eGaming to the Nordic countries. Within five years the company recruited over 300,000 new members, accounting for approximately 40% of Ladbrokes eGaming poker revenues. He and his family are also major shareholders in Betsson AB and Net Entertainment. In 2003 the Knutsson-founded Victoria Holdings Ltd, the parent company of TCS , acquired 100% of the UK-based John Huxley Group to form TCS JOHNHUXLEY. The IGA award was kept secret by Mr Knutsson’s family until the moment of the presentation. “I am overwhelmed and extremely delighted to receive this honour. It is very satisfying to be acknowledged not only for my achievements in the gaming industry, but also the varied other work I have been involved with over the years,” said Mr Knutsson in reaction to the award. Wynn Resorts reports Q4 revenue increase Wynn Resorts, Limited (Nasdaq: WYNN) reported financial results for the fourth quarter of 2011,with net revenues reaching US$1,343.9 million, compared to $1,237.2 million in the fourth quarter of 2010. The revenue increase was driven by a 9.1% increase in revenues from the company’s Macau Operations to $995.5 million, and a 7.2% revenue increase from its Las Vegas Operations. Adjusted property EBITDA was $402.2 million for the fourth quarter of 2011, compared to $365.2 million in the fourth quarter of 2010. The EBITDA increase was driven by a 5.5% increase from Macau Operations to $313.1 million, and a 30.3% increase from Las Vegas Operations. On a US GAAP basis, net income attributable toWynn Resorts for the fourth quarter of 2011 was $190.5 million, or $1.52 per diluted share, compared to a net income attributable to Wynn Resorts of $114.2 million, or $0.91 per diluted share in the fourth quarter of 2010. Adjusted net income attributable to Wynn Resorts in the fourth quarter of 2011 was $194.4 million, or $1.55 per diluted share (adjusted EPS) compared to an adjusted net income attributable to Wynn Resorts of $113.7 million, or $0.91 per diluted share in the fourth quarter of 2010. Wynn Resorts also announced that its Board of Directors has approved a cash dividend for the quarter of $0.50 per common share. The company added in its earnings release: “We continue to work on the final project scope, timeline and budget for our Cotai project.” Bertil Knutsson Main floor of theWynn Macau casino