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CR78-p54-Business2:SJC-Casino Review 22/3/09 00:32 Page 1
Solid H1 for SkyCity
SkyCity, which operates casinos in New Zealand and
Australia, has reported an underlying net profit of
NZ$55.6m (E22.1m) for the six months ending 31
December 2008, around 0.5 per cent down on the
H1/2007. CEO Nigel Morrison said: “Overall we view this
as a satisfactory result. However, like others we are
NEWS cautious in our outlook in relation to the economies of
both New Zealand and Australia.”
(E380.1m). A rise in costs
Macau carries
across the group, with a sig-
nificant amount due again to
pre-opening expenses and
write-downs, saw group
Las Vegas
operating profit fall 29.2 per
cent to $313.8m (E248.7m)
resulting in a net profit after
for Wynn
taxes of $210.2m (E166.6m),
halved to $5,629 (E4,461) down 18.5 per cent.
while machine revenues per “There is no good news,
unit per day fell almost 16 and you’ve heard this up and
per cent to $203 (E161). down the strip,” said Steve
In Macau, however, the Wynn in conference call on
fourth quarter saw net rev- the results. “Business is tough
enues rise 1.2 per cent to in Las Vegas. We are in the
$392.2m (E310.8m). mode of protecting our
Turnover from VIP gaming culture and our employees
fell very slightly to $11bn and seeing this
(E8.7bn) and the hold through…Business levels in
remained within the LasVegas are funky and weak.
expected 2.7-3 per cent That’s the best way to
range. However, on the mass describe them.”
market tables, drop fell by He said that casino cus-
four per cent to $487.2m tomers are also changing the
(E386.1m) with a win of 19.5 way they gamble: “People are
Wynn Macau has
offset dreadful results
per cent, toward the upper being more cautious - when
from Las Vegas
end of the expected range. they win, they’re playing for
Gross revenues from slot shorter periods of time. A
machines increased by 33.9 blackjack player gets up or a
per cent to $432,000 baccarat player gets up at the
(E342,000) due to an table, he jumps up and leaves
Diversification to Macau whilst keeping a close eye on debt levels has helped
increase in the number of if he’s a winner, whereas
Wynn Resorts to a full-year profit, albeit a reduced one after a poor fourth
machines to 1,241 from 708. before they said, ‘Oh boy, we
For the whole year, the got the house’s money, let’s
quarter reflecting dramatically reduced business in Las Vegas.
figures were rather better play longer’.”
with the company’s net rev- Analysts expect that the
winsomelosesome however, more than offset enues in the fourth quarter the period of $159.6m enues rising 11.5 per cent to numbers will continue to
WYNN RESORTS savings Wynn made in outgo- of $97m (E76.9m) - or 13.6 (E126.5m). $2.99bn (E2.37bn), largely contract for the next couple
ings over the quarter, bring- per cent - to $614.3m Net casino revenues at the thanks to activity in Macau, of quarters at least, however,
Steve Wynn’s shiny new ing the company to an (E486.8m), they served to Las Vegas properties in Q4 which generated $1.9bn as Wynn’s debt exposure is
resort in Las Vegas, Encore, operating loss for the last push the company over into fell 43.3 per cent to $90.7m (E1.5bn), 35.6 per cent more comparatively low, the risk
opened in December and three months of the year of the red on operations. That (E71.9m) with the table than in 2007. Fortunately for of opening Encore in Las
barely had time to have any $260,000 (E206,000). loss was compounded by the games holding just 15.3 per Wynn, that more than made Vegas at a low point in the
positive on the business Such costs were, of course, write-down in value of cent, well below the up for an annual fall in net continuing development of
figures; it’s pre-opening costs to be expected but in the certain assets and a hefty tax expected range of 21-24 per casino revenues of more than Encore Macau are seen as
of $46.3m (E36.7m), context of a fall in net rev- bill resulted a net deficit for cent. Win per table per day a quarter to $479.7m bearable.
Boyd to miss
out on Station
nostopping quarter results reflect the
BOYD GAMING ongoing recessionary
environment. With
Having reached an consumer confidence at
agreement with some of all-time lows, people
its major creditors, Station continue to scale back on
Casinos has taken itself off discretionary spending. We
in 2009
There is unlikely to be any growth in
revenues at the Genting Highlands
the market, frustrating the will continue to manage
resort in Malaysia this year
acquisition plans of its our business to ensure we
arch-rival for the Vegas are operating efficiently
locals market, Boyd and competitively during
hardtimes its cruise business pushed experiencing its worst condi- Gaming. these challenging times.
RESORTS WORLD the company to a 387.9m tions for eight years when the Boyd, which operates The strength of our
ringgit (E82.5m) net loss for Asian bubble burst. In the UK, 15 casinos including the geographically diversified
The dominant Leisure and the period and caused annual where Genting Stanley is the Borgata in Atlantic City, portfolio, our balance
Hospitality division of Resorts net profit to fall by 59 per cent country’s largest operator, had hoped to spend sheet and our experienced
World, the part of the Genting to 634m ringgit (E134.9m). the results already reflect the $950m (E753m) on management team, has and
Group that encompasses Although the underlying deepening recession and the Station, a move that some will continue to serve us
casino operations in Malaysia figures for Resorts World regulatory changes that have analysts thought well as we navigate our
and the UK, recorded a were largely very acceptable compounded the poor appealing. However, as the way through this
revenue increase of 12 per last year, the company affected by a slowdown in the economy. British operations, company has just reported economic downturn.”
cent in 2008, reaching 4.86bn expects that this year will be local economy which may said the company, made an an annual $223m (E177m)
ringgit (E1.03bn). difficult. In a statement, the affect visitations to Genting annual loss even before loss, almost entirely
Divisional revenues of company said: “Prospects in Highlands Resort. The group impairment charges, through the write-down of
1.32bn ringgit (E280.8m) in 2009 will be challenging as will continue to closely because of lower business $290m-worth (E230m)
the fourth quarter to the end the worsening global eco- monitor its business and take volume, redundancies, write- assets in Q4, it may turn
of December also repre- nomic situation will impact appropriate measures to offs due to casino closures, out to be a blessing in
sented a rise of 17 per cent, the leisure and hospitality address any slowdown in bad debts and higher gaming disguise.
but an impairment charge of industry. The group expects business activities.” duty, not helped by the weak- Keith Smith, president
781.5m ringgit (E166.3m) on consumer sentiments to be Malaysia’s economy is ness of sterling. and CEO, said: “Our fourth
54 April 2009 • businessnews
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