Inside Asian Gaming

INSIDE ASIAN GAMING | July 2012 14 Ponte 16 Ponte 16 Resort, Macau S ociedade de Jogos de Macau (SJM) singled out strong performance at two of its 20 properties (which include three licensed slot halls and 17 casinos) as bolstering its growth in 2011. First was the company’s flagship property, Grand Lisboa. Second was Ponte 16 Resort, Macau, one of SJM’s 14 so-called “satellite” casinos. Ponte 16 is 51% owned by SJM, with the remaining share held by the property’s third-party promoter, Success Universe Group. The property has recorded continuous improvement in its operating results since its February 2008 opening. Its recent revenue growth has outpaced that of the overall market, and in 2011 it recorded its first net profit with adjusted property EBITDA [earnings before interest, tax, depreciation and amortization] reaching HK$316.8 million for the year, up from $206.6 million in 2010. One of the distinguishing features at Ponte 16 vis–à–vis SJM’s other satellite casinos is the throng of regular local players it draws to its main casino floor. Whereas Macau-wideVIPbaccarat accounts for almost three quarters of total gaming revenue, at Ponte 16 its share is closer to 50% thanks to the property’s strong mass-market appeal. Ponte 16’s trademark attraction is Asia’s first and only Michael Jackson Gallery, which records the key milestones in the King of Pop’s career and displays a collection of over 40 iconic items related to the artist, including the famous rhinestone-encrusted glove he wore during his first Moonwalk performance. The glove was picked up at auction in late 2009 for US$350,000 by Hoffman Ma, deputy CEO and deputy chairman of Ponte 16 Macau/Success Universe Group, and became the gallery’s centerpiece. The property’s other major non-gaming draw is its unique location at Macau’s Inner Harbor, within a somewhat dilapidated neighborhood but also offering easy access to Macau’s UNESCO world heritage sites. Part of its remit is to revitalize the surrounding area. Pop Icon Ponte 16’s Hoffman Ma tells us what gives his property more mass-market appeal than the other casinos on the Macau Peninsula Ponte 16 is currently awaiting government approval to commence construction of its third phase, which will feature a riverside commercial complex with a total floor area of approximately 40,000 square meters. The complex will also include space for the expansion of gaming areas and car parks, with construction expected to be completed by 2014. Pier 16 – Property Development Ltd, the owner of Ponte 16 casino resort, announced in April the signing of five-year syndicated loan facilities with 11 financial institutions worth HK$1.9 billion (US$245 million) and RMB400 million (US$63.6 million). In addition to funding the construction of the