Inside Asian Gaming

INSIDE ASIAN GAMING | September 2012 32 Asian Gaming 50 – 2012 28 Sonny Yeung Chairman Success Universe Group 29 Jay Chun Chairman and Managing Director Paradise Entertainment encrusted glove he wore the first time he performed the “moonwalk” on American television). The property’s other major non-gaming draw is its unique location at Macau’s Inner Harbor, within a somewhat dilapidated neighborhood but offering easy access to Macau’s UNESCO World Heritage sites. Part of its remit, in fact, is to revitalize the surrounding area. Ponte 16 is currently awaiting government approval to commence construction of its third phase, which will feature a waterfront 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. Ponte 16 cost only HK$2.4 billion to build (US$310 million at current exchange rates), a modest sum by contemporary Macau standards. Pier 16 – Property Development Ltd, the owner of Ponte 16, announced in April the signingof five-year syndicated loans 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 third phase, the proceeds will be used to refinance existing credit facilities and repay shareholder loans. Sonny Yeung’s formative gaming industry experience was as a VIP room operator at Stanley Ho’s Casino Lisboa. The relationship forged during that time paid dividends when he was able to broker the investment deal with Dr Ho for Ponte 16. Success Universe has now moved its VIP customers into a room at Ponte 16 with nine tables while outsourcing another two VIP Sociedade de Jogos de Macau singled out strong performance at two of its 20 properties (which include three licensed slot halls and 17 casinos) as instrumental in 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 got off to a sluggish start following its February 2008 opening but has recorded continuous improvement in its operating results since then. Its recent revenue growth has outpaced that of the overall market, and in 2011 it recorded its first net profit, with adjusted property EBITDA reaching HK$316.8million for the year, up from$206.6 million in 2010. One of the distinguishing features of Ponte 16 vis à vis SJM’s other satellite casinos is the throngs of local players it draws to its main casino floor. Whereas in Macau VIP baccarat 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 museum which records the milestones in the King of Pop’s career and displays a collection of more than 40 iconic items related to the artist (including the famous rhinestone- Anyone with a stake in the growth of machine gaming in Macau who hasn’t heard of LT Game will want to remember the name Jay Chun. The electronic table games innovator is chairman andmanaging director of LT’s parent, Hong Kong-listed Paradise Entertainment, under whose leadership LT has cornered about 8% of the peninsula’s floor space in machine games with more placements to come. Mr Chun wants LT’s sleek, customizable player terminals to be as numerous in rooms at the property with a combined 18 tables to two other junket operators. Ponte 16 includes a further 81 mass-market tables. In addition to Ponte 16, Success Universe Group also operates a cruise business, MV Macau Success, and two travel businesses, Travel Success and Jade Travel. By utilizing the sales network of those businesses, the group has boosted occupancy rates at Sofitel Macau at Ponte 16. Partnerships with China- focused airlines and tour operators to offer Chinese tourists travel packages also help draw visitors to Ponte 16. the market as slot machines. That’s a lot of ground to cover, but with more than 1,200 units in operation and counting, the company is moving in the right direction. At G2E Asia in May, LT unveiled the next generation of its feature-rich Live Table Multi-Game System, with an enhanced software package, greater functionality and some tweaks in the design of the terminals to make them more comfortable and more conducive to extended play. Baccarat is the most popular offering, not surprisingly, accounting for about 80% of LT’s handle, and as the name of the system implies, the games are live, which makes all the difference in the world as far as Chinese players are concerned. The