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CR78-p52-Business1:SJC-Casino Review 22/3/09 00:34 Page 1
Monticello impacts Sun’s half-year
The opening last October of the Monticello casino in
Chile pushed Sun International’s H1 EBITDA down by
two per cent to R1.4bn (E106m). However, the
group’s overall revenues were up six per cent on
2007 to R4bn (E304m) with the contribution from
gaming up by five per cent. Losses in Chile saw the
period’s profit fall five per cent to R323m (E24.6m).
Rank posts annual
loss but appears
more stable
While there has been much speculation about the future of Rank, the bluerwater
gaming and betting group turned in a set of results for 2008 that were
better than expected. Having built a relatively firm foundation for future
Rank Group Having made the decision to
growth, the current management seems safe for the moment. CEO Ian Burke:
sell off its foreign operations
“2008 was a
in the UK and Bahamas in
steadystate year. We steadied average of the pension scheme, saw
year of
order to concentrate on its
RANK GROUP weekly revenues, realised sig- charges to the 2008 home markets, Isle of Capri
nificant cost savings across accounts totalling £30.4m has posted figures, which,
With 32 casinos in the UK, the group, exited our final (E34.1m), even despite an the company says, indicate
plus two in Belgium, an salary pension plan and extra £42.8m (E48.1m) a turnaround in the
online presence and bingo achieved a substantial reduc- resulting from a refund by company’s fortunes.
halls across Britain and tion in net debt.” the UK Treasury for VAT While third quarter and year-
Spain, the Rank Group has He continued: “We have taken from interval bingo to-date revenues to 25 January,
set itself up as a specialist in made improvements to our games. The net loss for the excluding hurricane insurance,
the gaming sector. It has not gaming and non-gaming year was, therefore, £4.9m were down on the prior year by
been a smooth path: the products, raised our (E5.5m). eight per cent and 5.1 per cent
costs of transforming the service level and put in The operating profit gen- to $248.2m (E197.3m) and
business were high and gam- place systems to give us erated by Grosvenor Casinos $784.6m (E623.8m) respec-
bling reform has not gone better understanding of was £29.5m (E33.1m), a tively, the company managed to
the way the company hoped customer preferences and shade down on 2007, overturn losses from the previ-
or expected, impacting behaviours.” however, that figure ous year for both periods. Net
operations. As a result, the In bald figures, total group included an increase of profit for the quarter reached
share price, which had revenues from continuing £1.5m (E1.7m) in casino $46.1m (E36.7m), which also
peaked in December 2006 operations were £522.2 gaming duty and encom- (E5.7m) and from F&B, helped the nine-month figures
at around 450p, fell to as low (E586.6), a fall of just over passed also the loss of £12.2m (E13.7m). to $29m (E23.1m).
as 49p by December 2008. two per cent. The Mecca Section 21 games. Ian Burke commented: Chairman James Perry com-
For the board it is a per- Bingo division, the Revenue from the five “We believe that over the mented: “While we continue to
ilous position: several share- company’s largest, fell fur- London casinos, rose medium term, the number be aware of the uncertainty in
holders have picked up thest, however, Grosvenor £500,000 to £88.5m of adults visiting casinos in businesses that rely on con-
important stakes and the Casinos also saw its revenues (E99.4m), although operat- Britain will increase signifi- sumer spending during this
threat is there that if the drop by 1.6 per cent to ing profit fell slightly to cantly from current global economic downturn, we
senior managers fail to £206.2m (E231.6m). Top £14.3m (E16.1m). Revenues levels…Our plan is to are also optimistic about our
perform they will be out on Rank España saw a rise from the 27 provincial and Middlekerke rose 4.5 develop seven of our non- business because of the opera-
their ear, especially if a thanks to the relatively venues fell 6.1 per cent to per cent despite a fall in operating licences as new G tional changes we have made
takeover bid is mounted. strong euro while revenues £101.8m (E114.4m) with admissions. Improved elec- Casinos, beginning this year that have had a positive impact
On the face of it, then, a from Rank Interactive (the operating profit down 8.4 tronic games are credited in Dundee. The potential for on guest satisfaction and cour-
£26.1m (E29.3m) pre-tax loss online division formerly per cent to £13.5m with the improvement. growth of the G Casino tesy rankings.”
for 2008 is bad news. Not so, known as Blue Square) rose (E15.2m). The two casinos In the UK, table game rev- model has been expanded
said group CEO Ian Burke: by half a million pounds to in Belgium saw revenues and enues fell 4.1 per cent to as a result of a review carried
“2008 was a year of stabilisa- £52.6m (E59.1m). profits rise to £15.9m £144.6m (E162.4m), while out in 2008, which will
tion for Rank following a Group operating profit (E17.9m) and £1.7m revenue from gaming reduce the capital cost of
period of significant before exceptional items fell (E1.9m), up 21.4 per cent machines fell six per cent to development by 20 per
upheaval in the gaming indus- 11.7 per cent to £60.3m and 88.9 per cent respec- £28.4 (E31.9m). These were cent….During the first half
try in 2007. The group ended (E67.7m), however, one-off tively, although this was due partially offset by increases of 2009, we will rebrand our
2008 in significantly better losses including £99.2m mostly to euro strength. Euro in revenue from poker Bolton casino following a
shape than it had started the (E111.4) from the transfer revenues at Blankenberge which totalled £5.1m major refurbishment.”
Melco Crown losses
in 2007. For the year, net loss Macau, Melco Crown is still ments we address to our remains on time and on
shrank to just under $2.5m riding the wave of the busi- overall market share. [We budget…Our conservative
contract in 2008
(E1.9m), a fraction of the ness being brought in by its are] about to emerge as a approach to managing our
$178.2m (E142.1m) posted junket partners. That contin- full-blown operating entity balance sheet continues to
in the prior year. uing revenue stream is vital from a company that has pay off. City of Dreams
Net revenues, which were as it gears up for the opening been largely focused on remains fully funded and
steppingup boosted in the year thanks to of its huge City of Dreams property development.” our development pipeline
MELCO CROWN ENTERTAINMENT a junket deal with AMA, development on the Cotai He added: “City of Dreams is intact.”
reached $253.5m (E202.2m) Strip probably in June. Escaping the worst of the
The joint venture company up 41 per cent in Q4, and Lawrence Ho said: “The credit shortage is a neat trick:
behind the Crown Macau, almost quadrupled in the opening of City of Dreams the company now has three
run by Lawrence Ho and year to $1.42bn (E1.13bn). will solidify our portfolio years before its debts start to
James Packer, has reported a While the fourth quarter approach to development mature, during which time it
net loss of US$18.8m (E15m) results reflect the globally and changes the complex- will need the world
for the fourth quarter of softening market and the par- ion of our company in economy to get off its knees
2008, almost halving the loss
Melco Crown’s co-chairman
ticular restrictions that are almost every measurable and for its venues to be gen-
reported in the same period and CEO, Lawrence Ho affecting the market in way, from the market seg- erating significant cash.
52 April 2009 • businessnews
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