Growth in gaming revenue per visitor is slowing as casinos switch their focus to mainland mass-market gaming from VIP gaming, Bloomberg reports.
Monthly Archives: October 2013
The issue of importing foreign labor remains on the public agenda. Lawmakers have urged the government to continue defending the current employment policy, which determines that only Macau residents are allowed to work as casino croupiers, supervisors or drivers. However, during yesterday’s Legislative Assembly (AL) plenary session, it was clear that not all lawmakers agree on turning the policy into law, as recently demanded by labor groups working within the sector… Angela Leong… emphasized that regulating the casino croupiers’ profession is another question, deserving of more careful consideration.
All the Hong Kong-listed Macau gaming stocks were up yesterday by between 3.58 percent and 5.07 percent. A number of analysts are however counseling that some names could face price corrections if valuations get too far ahead of earnings estimates. Signs of increased risk include shares being “more immune” to positive news … Praveen Choudhary, managing director of Morgan Stanley said in a note issued from Hong Kong that the bank was downgrading the stock of Sands China Ltd, Galaxy Entertainment Group Ltd and MGM China Holdings Ltd, from ‘overweight’ to ‘equal weight’. It cited “limited upside, with no capacity additions before mid-2015 and uncertainty around licenses”. The bank added that Macau gaming stocks had outperformed the Hang Seng Index by around 70 percent year-to-date.
C Y Foundation Group Ltd says it will return to profit when it reports next month on its results for the six months to September 30. It made a loss in the equivalent period in 2012. In June, Hong Kong-listed C Y Foundation said it was acquiring a firm that manages electronic games at a Macau casino. Weike (G) Management Macau Ltd runs 205 slots and electronic table games at Pharaoh’s Palace Casino at The Landmark Macau hotel. In a follow up filing in September, C Y Foundation said the deal was for a total consideration of HK$69 million (US$8.9 million).
Macau Legend Development Ltd’s adjusted earnings before interest, tax, depreciation and amortization were HK$194.2 million (US$25.05 million) in the third quarter of this year, 6.1 percent more than a year … third-quarter revenue rose by 5.6 percent to HK$421.1 million. The company’s gaming revenue rose by 1.2 percent to HK$294.4 million. The occupancy rate of the company’s Landmark Macau hotel was 97.2 percent in the third quarter and the occupancy rate of its Rocks Hotel was 86.9 percent.
Wynn Macau Ltd. (1128)’s sale of $600 million of notes this month without conditions on further borrowing underscores soaring demand for Asian gaming debt even as economic growth slows in China. The yield on the casino operator’s eight-year 5.25 percent U.S. currency securities dropped 29 basis points through yesterday from their issue on Oct. 16, data compiled by Bloomberg show. Bonds sold by Melco Crown Entertainment Ltd. returned 7.95 percent this year versus 0.05 percent for the Bank of America Merrill Lynch Asian Dollar Corporate Index.
The next generation of Norwegian Cruise Line’s mega-ships could come to Bermuda, the firm’s CEO has revealed. Kevin Sheehan told the Bermuda Sun he was very pleased with how the Norwegian Breakaway’s inaugural season travelling between New York and the island had gone. And Mr. Sheehan said that recent legislation that allows ships to open their casinos while in Bermuda means there is every possibility that Norwegian’s newest ships would continue to come to the island. The Norwegian Escape comes into service in 2015… will carry 4,200 passengers and will be Norwegian’s biggest liners when they come into service. Mr. Sheehan said: “It’s definitely possible that Bermuda will see our next newest ships.
The Ministry of Finance has extended the deadline for submission of proposals for casino resorts to sometime in November and met with potential bidders last Wednesday to discuss the status of the project… Declaration of an approved IRD by the finance ministry qualifies the investor to apply for a casino gaming license under Section 9 of the Casino Gaming Act of 2010. Three licenses are prescribed in the legislation. The exact date in November for bids has not been disclosed… Bids require a non-refundable application fee of US$150,000 (J$15.75m). A project manager in the real-estate sector, who declined to be named, said the application fee was seen as prohibitive.
More than 4,000 staffers of leading South African hotel and gaming group Sun International will go on strike on Friday to demand higher pay, according to trade union federation Cosatu. Cosatu said Thursday the workers from 16 Sun International hotels and casinos would also stage a “march and handover a memorandum with their demands to management.” The decision to down tools follows a collapse of wage negotiations between unions and the hotel chain. The government labor arbitrator has failed to resolve the dispute. Simphiwe Nikiwe, a negotiator with a Cosatu affiliate union, told AFP workers were demanding a 10 percent pay rise to be back-dated to July, but their employer had offered only 6.5 percent. Among the hotels to be affected are the popular Sun City Resort in northwestern South Africa and Grand West Casino and Entertainment World in Cape Town.
Sun International Ltd September quarter was an exceptionally strong quarter for the group’s casinos. Slowdown in casino revenue experienced in H2 2012 has continued in the quarter to September 2013. Monticello casino revenue was down 11% (23% in local currency) as a result of the anti-smoking laws. Hospitality revenues grew strongly with room revenue up 34% and food, beverage and other revenue up 15% … Hospitality revenues are, however, expected to continue to grow strongly. September quarter revenue up 3 percent at R2.544 billion.