Inside Asian Gaming

INSIDE ASIAN GAMING | November 2013 24 IN FOCUS SJM’s share held steady at 25.0% between the second and third quarters, though Sands China managed to increase its share from 20.7% in Q2 to 22.1% owing to its dominance in the fast-growing mass market. Sands’ gain was largely the result of loss of share by Melco Crown Entertainment. Melco Crown Entertainment’s City of Dreams Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 SJM 28.0 27.4 26.8 27.6 27.0 25.0 25.0 Sands China 17.6 17.3 19.1 20.4 20.6 20.7 22.1 Galaxy 18.8 21.2 19.4 18.2 18.7 18.8 18.7 Melco Crown 13.4 12.6 13.2 13.5 13.3 14.8 13.6 Wynn Macau 12.2 11.8 12.1 10.7 11.3 10.5 11.0 MGM China 10.0 9.6 9.4 9.6 9.1 10.2 9.6 Share of Overall Macau Gaming Revenue by Operator (%) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 SJM 25.9 25.5 24.8 26.7 26.7 24.8 23.9 Galaxy 20.4 23.4 21.0 19.3 19.9 19.7 20.0 Sands China 15.7 14.7 16.1 17.3 17.2 16.8 18.4 Melco Crown 13.9 13.1 14.2 14.2 13.7 15.5 13.8 Wynn Macau 13.2 12.9 13.6 11.9 12.5 11.9 12.9 MGM China 10.9 10.4 10.2 10.5 9.9 11.3 11.0 Share of VIP Revenue by Operator (%) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 SJM 28.3 28.1 27.1 28.4 27.7 26.9 28.2 Galaxy 22.4 23.0 21.7 19.7 19.3 19.9 20.5 Sands China 12.5 13.3 14.9 15.3 15.8 15.5 15.7 Melco Crown 12.6 12.8 13.6 14.3 14.6 14.3 12.4 Wynn Macau 14.3 13.5 12.4 11.5 11.6 12.1 11.9 MGM China 9.9 9.3 10.3 10.7 11.0 11.4 11.3 Share of VIP Rolling Chip Turnover by Operator (%) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Sands China 22.8 24.7 26.4 27.8 28.8 29.9 29.8 SJM 34.3 32.6 31.6 29.6 27.6 25.6 27.2 Galaxy 14.3 15.0 15.5 15.5 15.9 16.7 16.0 Melco Crown 11.8 11.3 10.7 12.0 12.3 12.9 13.1 Wynn Macau 9.5 8.8 8.5 7.8 8.3 7.1 7.1 MGM China 7.2 7.6 7.3 7.3 7.1 7.7 6.8 Share of Mass Market Revenue by Operator (%) five new operators, the market share lead of erstwhile monopoly operator SJM has been steadily eroded. SJM still commands the largest share of Macau gaming revenue, though Sands China is hard on its heels. SJM’s share held steady at 25% between the second and third quarters, though Sands China managed to increase its share from 20.7% in Q2 to 22.1% owing to its dominance in the fast-growing mass market. Sands’ gain was largely the result of loss of share by Melco Crown Entertainment. Sands China also saw the largest gain in its share of VIP revenue in the third quarter, while Melco Crown experienced the greatest loss. Notably, while SJM suffered an erosion in its share of VIP revenue, this was the result of an especially unlucky quarter in its VIP segment— its 3Q VIP win rate of 2.65% was the lowest among the six operators. The industry-wide average was 3.12%, Sands China achieved 3.67%, Galaxy Entertainment Group, 3.05%, Wynn Macau, 3.38%, MGM China Holdings, 3.02% and Melco Crown got 2.96% at Altira and 3.79% at City of Dreams. Discounting the luck factor by considering VIP rolling chip turnover by operator, it seems Melco Crown indisputably lost ground in the VIP sector in the third quarter, while SJM could actually have improved its standing in the segment if it wasn’t for an unlucky quarter. Sands China