Inside Asian Gaming

INSIDE ASIAN GAMING DECEMBER 2017 50 ASIAN GAMING POWER 50 2 0 1 7 Resorts World Sentosa is bouncing back after painful times as China’s economic growth slowed and VIP play contracted. For this year’s first nine months, the Genting Singapore integrated resort reported gaming revenue up 12% and EBITDA up 64%. Management has cut costs, promoted high margin segments and slashed impaired receivables by 80% thanks to “a more measured” VIP credit policy. For Genting, securing an IR license in Singapore was crucial to defend its original Highlands Resort in Malaysia, and Tan Hee Teck led that winning effort. Even though it cost US$5.7 billion and runs second to crosstown rival Marina Bay Sands, Resorts World Sentosa has proven a highly profitable defensive gambit, delivering the majority of EBITDA in Genting Group’s core hospitality and leisure segment. The IR is on pace to produce some US$900 million in property EBITDA this year on US$1.8 billion revenue, a Tan Hee Teck CHAIRMAN AND CEO Resorts World Sentosa POWER 1,007 LAST 15 SCORE YEAR CLAIMS TO FAME Spearheaded Genting’s crucial battle for Singapore gaming license Oversees one of world’s most profitable IRs Point player for Genting’s Japan IR ambitions 25 50% margin. To stay relevant in Singapore, RWS is formulating a five year strategic plan to enhance visitor appeal. Mr Tan also serves as President and COO of Genting Singapore, the IR’s SGX listed corporate parent. GenSing took the lead on RW Jeju, a US$1.8 billion IR on South Korea’s tourist island with visa free entry for mainland Chinese. In November last year, Genting decided to sell its Jeju stake to joint venture partner Landing International. The deal closed early this year, with GenSing booking a US$71 million profit on its US$367 million investment, a 19% return. Genting said it exited Jeju to focus on Japan, correctly anticipating Japanese Diet passage of legislation formally starting the casino legalization process. Many consider Genting a Japan IR frontrunner and, building on his Singapore success, Mr Tan leads that push. This year, GenSing established a Japan office and raised ¥20 billion (US$175 million) through yen denominated bonds to support the IR drive. Phil-lip Chun CHAIRMAN AND CEO Paradise Group POWER 932 LAST 32 SCORE YEAR CLAIMS TO FAME Son of Rak-won Chun, who founded Paradise Group in 1972 Has 50% market share of Korea’s foreigners-only casino revenue 26 It’s been a frustrating year for Paradise Group. A year that should have signaled huge celebration for the company as it opened South Korea’s first integrated resort in April was instead overshadowed by a series of external events – most notably the THAAD missile crisis that has seen vital tourist numbers from China plummet since the start of the year. For Korea’s foreigner-only casino operators – of which Paradise Group is the dominant player – such lack of visitation has been disastrous, with gaming revenue for each of the first two quarters of 2017 sitting around US$250 million, down from a peak of US$348 million in 3Q14. Paradise alone saw gaming revenue fall 20.7% year-on-year for the first half of 2017 to KRW241.7 billion (US$210.3 million) on the back of a 21.6% decline in table game sales at its four foreigner-only casinos – despite Paradise City opening its doors on 28 April. That should come as no surprise, says Union Gaming’s Managing Director and Head of Asia Equity Research, Grant Govertsen, given