Inside Asian Gaming

inside asian gaming JUNE 2015 42 Credit Suisse Says Macau May Have Turned the Corner Although Macau registered a 37% year-on-year decline in gross gaming revenue in May, Credit Suisse analysts Kenneth Fong and Isis Wong highlighted some causes for optimism in a research note released in early June. Remarking that Macau showed “some green shoots” in May, they pointed out that VIP gaming revenue in the month was up 3% over April, VIP rolling chip turnover gained 7% month on month and mass-market revenue grew 9%. “We highlighted in our earlier piece that Macau was hurt by the slower visitation in Hong Kong. We believe the impact is gradually fading. In fact, recent data shows that the Chinese visitation also improved 7.2% year-over-year during 1-24 May in Hong Kong,” the analysts wrote. “As the mainland Chinese visitation trend between Hong Kong and Macau has strong correlation, we believe a better trend in Hong Kong should bode well for Macau,” the research note added. Century Properties Withdraws Case Against Okada construction delays. It has been reported that under the original agreement between Tiger and Pagcor, the property should have opened by 31st March this year. Regulators confiscated a P100 million (US$2.2 million) assurance bond from Tiger and gave the company until mid-July to justify an extension to its timetable, said Francis Hernando, vice president of Pagcor. Tiger said it wanted to delay the opening of Manila Bay Resorts to the first quarter of 2017, according toMr Hernando, with the company now hoping to build a bigger complex than originally planned. Travellers Q1 Net Income Up While Bloomberry Records Loss Travellers International Hotel Group, Inc., owner and operator of Resorts World Manila, reported a 2% increase in Q1 net income to P1.7 billion (US$38.2 million) on the back of increased foot traffic and reduced expenses. In a statement, Travellers said its gross revenue in the first quarter amounted to P7.6 billion ($171.1 million), down from P8 billion in the same period of 2014. Travellers’ total expenses for the quarter have been reduced, with direct cost falling 2.9% to P2.2 billionwhile general and administrative expenses fell 11.8% to P 2.7 billion as a continuing positive effect of customer segment focus and operating efficiency initiatives. Gaming revenue in the first quarter stood at P 6.8 billion, up from P7.2 billion in the year-ago quarter, while hotel, food and beverage, and other revenues amounted to P780.5 million, slightly lower than the P791 million recorded in Q1 2014. Travellers also said daily property foot traffic in Resorts World Manila increased 9% year on year to 20,229 despite prolonged holidays during the Pope’s visit, Holy Week, and the inconvenience caused by the ongoing Skyway construction. The integrated casino and resort operator also maintained its net cash position at P4.9 billion for the first quarter of 2015 while the company continues to pursue aggressive expansion projects. ”We continue to fast track our expansion by simultaneously developing RWM’s Phase 2 and 3,” said Travellers President and CEO Kingson Sian. For Phase 2, Travellers in April opened Marriott Grand Ballroom, the largest ballroom in the country, while the Marriott West Wing will be completed by the first quarter of 2016. REGIONAL BRIEFS Artist’s impression of the upcoming Manila Bay Resorts Century Properties Group Inc. (CPG) is withdrawing its court case against Japanese tycoon Kazuo Okada over their botched deal to build an integrated resort and casino project in Manila’s burgeoning Entertainment City casino resort district. The disagreement between the two parties was settled amicably after a top-level meeting involving CPG Chairman Jose E.B. Antonio and Mr Okada. “We recognize that the disagreement between our companies was a result of a misunderstanding of the issues, which were clarified in our meeting with Mr Okada,” said CPG in a statement on 14th May. CPG said that it is now taking the appropriate legal steps to withdraw the case, as it focuses its attention on more constructive matters. “We wish the Okada group continued success in its projects,” it added. Tiger Resorts Leisure and Entertainment is the local subsidiary of Okada-owned Universal Entertainment Corporation which is undertaking the development of the US$2 billion Manila Bay Resorts. On 12th May, Philippines gaming regulator Pagcor (the Philippine Amusement and Gaming Corporation) said it would suspend Tiger’s casino license if it failed to adequately explain Resorts World Manila