GREATER CHINA 9
between 49 VIP and 361 mass. Three junkets -- Sun City, Guandong and Tak Chun -- are operating at the casino. The Parisian Macao will further be able to increase its table count by 25 in January next year and a further 25 the following year. Total net revenues for Sands China increased 3.6 percent to $1.72 billion in Q3, compared to $1.66 billion in the third quarter of 2015. Net income for SCL decreased 5.5 percent to $324.3 million. The Parisian Macao contributed more than 19 million in adjusted property EBITDA in its first 18 days of operations.
MELCO CROWN ENTERTAINMENT (6883.HK) Has three casinos. The company’s $3.2 billion Studio City opened on October 27, 2015, with an allocation of 250 tables, short of the 400 requested. All tables were initially allocated to the mass sector, a first in Macau, but it now plans to open three VIP rooms. The DICJ has said it’s considering MCE’s VIP room request. The resort features a 5,000-seat multipurpose theatre, a permanent magic show, jungle-themed river rides, Asia’s highest Ferris wheel and a Batman simulated ride. MCE says the resort will be made up of 95 percent non-gaming components. Joint venture partner Crown Resorts recently said it would sell down some of its stake in Melco Crown, selling the stock back to Melco for about $800.8 million. Melco Crown Q3 results beat expectations helped by an improved performance from Studio City. Adjusted EPS was $0.13 per ADS, up from $0.11 per ADS a year earlier and above the $0.07 per ADS consensus. Revenue for Q3 rose 22 percent to $1.15 billion and beat estimates for $1.1 billion. Net revenue at Studio City was $229.5 million. However, analysts said the improvement at Studio City may have been at the expense of City of Dreams.
WYNN MACAU (1128:HK) Opened its $4 billion Wynn Palace in Cotai on August 22 after facing construction delays. The company’s original property is on the Macau Peninsula. The Wynn Palace has 1,700 hotel rooms and 90 percent of the resort will be non-gaming. The company said the resort will feature a performance lake, casino, spa, retail and other outlets. It was aiming for
about 500 table games, but was only granted 150, with 100 at the opening, 25 in January and the remainder in 2018. Unlike other recent openings, the resort will have VIP operations, with Suncity Group, Tak Chun Group and Guangdong Group announcing they will be operating VIP rooms. Morgan Stanley said it believes the market is underestimating the potential of Wynn Palace, mainly due to a slow ramp up of the mass business. It estimates Wynn Macau EBITDA will grow from $676 million in 2016 to $961 million in 2018, with Wynn Palace to achieve EBITDA of $433 million in 2018. In Q3, Wynn reported net revenue from its Macau operations fell 11.5 percent to $518.1 million. Adjusted property EBITDA from Wynn Macau was $151 million for the quarter, down 7.3 percent from $162.8 million for the same period of 2015. Wynn Palace reported net revenues and adjusted property EBITDA at $164.6 million and $25.5 million. Company officials complained ongoing construction was making access to the resort difficult. In September, Wynn Macau announced the appointment of Ian Michael Coughlan as president of the company, effective immediately. He replaces Gamal Abdelaziz who resigned to pursue other opportunities.
GROSS GAMING REVENUE -5%
Y16 VIP Y17 VIP Y18E VIP Y16E mass
-4% +2% +4% +12%
Y17E mass Y18E mass
MGM CHINA (2282:HK) Is operating a single casino in the peninsula. The opening for its new $2.9 billion development, the MGM Cotai, has been pushed back from late 2016 to the second quarter of 2017. The resort will not feature any VIP rooms at the opening and will focus on mass gaming, while its original property will continue to offer VIP services. MGM Cotai will have approximately 1,500 hotel rooms and suites, meeting spaces, high end spa, retail offerings and food and beverage outlets. The HK$24 billion ($3.1 billion) project has a jewellry-box design and 85 percent of its gross floor area will be dedicated to non-gaming facilities. The group has begun a series of recruitment fairs for its new Cotai property. The fairs will be organized in collaboration with Macau Federation of Trade Unions, Federation of the Macau Residents Association, Macau Gaming Industry Laborers Association (MGILA) and the Macau Women’s General Association. There will be around 1,200 new positions with approximately 6,000 job openings for both gaming and non-gaming departments.
Li praises diversification efforts Chinese Premier Li Keqiang praised recent economic improvements in Macau and said the work of the local government had been very positive. On a three-day visit to the special administrative region, he said the central government also supports the local economy. “I had the opportunity to see and acknowledge the modernity and prosperity of Macau but also the cultural diversification and I believe that this will continue and the economy will reach the goal of its diversification,” he said.
Asia Gaming Briefings | November 2016