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CR79-p52&53-business1&2:SJC-Casino Review 19/4/09 01:13 Page 1
PGIC winding up
The rump of Progressive
Gaming International, whose
major assets were acquired by
IGT in January, has applied for
Chapter 7 bankruptcy in
Nevada. The procedure sees
the appointment of a trustee,
James Losowski, who will now
move to sell the remaining
assets in order to pay down
the company’s debts, listed as
$5.6m (E4.2m). In the
bankruptcy filing, those assets
were valued at just $263,000
SJM remains confident
despite halved profits
bottom line
Having suspended
the lower profit in the year the figure was HK$292,217 easternpromise
The massive hotel atop the
operations at five
Grand Lisboa is now in
were competitive conditions (E28,370). VIP revenues were ELIXIR GAMING TECHNOLOGIES
which results in an increased down 22.5 per cent to
of its Macanese
operation and exceeding
expectations, says operator
share of VIP revenues being HK15.97bn (E1.55bn), Elixir Gaming Technologies,
casinos and
SJM Holdings paid to VIP gaming promot- reflecting a 20 per cent which supplies gaming
leasing out others,
ers, the start-up costs and decrease in chip sales. machines and other equipment
SJM Holdings
operating loss of Ponte 16, the The mass market segment to casinos throughout east and
start-up costs of Grand Lisboa increased its contribution to south east Asia, has reported a
has shrunk its Hotel and increased deprecia- gross gaming revenues to 39.5 full year loss of US$26.9m
business but with
tion and interest costs related per cent, as its net takings rose (E20m), reducing its huge
money in the bank,
to both projects.” by 3.6 per cent to $234.6m (E174.6m) deficit from
However, the picture is not HK$11.06bn (E1.07bn). The 2007, which was largely the
it remains on a
an unremittingly dull one: the number of tables for the lower result of a restructuring exercise.
sound financial
flagship Grand Lisboa Casino stakes players operating at Nevertheless, 2008 remained
footing - one of
saw revenues and profit rise the end of the year rose to a challenging year for the
the few operators in
substantially in the year: 1,154 - up 47 from the previ- company with revenues rising
takings were up almost 80 per ous year, however, that by less than one per cent to
the territory that is. cent to HK$8.60bn (E835m) includes the 97 at Ponte 16. $12.3m (E9.1m). Following the
and profit by nearly 40 per Slot machine revenues resolution of its patent dispute
oldschool cent to HK$1.14bn comprised 3.4 per cent of with Shuffle Master, including
SJM HOLDINGS (E110.6m). Daily revenues total GGR, up from 2.7 per the sale of its shuffler technol-
from the mass-market table cent in the previous year, with ogy, the company is focusing its
A fall in gross gaming rev- games grew by 5.5 per cent average machine park rising attention on gaming machines.
enues has seen the annual and those from slot machines by 367 to 3,842. Revenues This is already being reflected in
profit in 2008 for SJM Hold- by 43.9 per cent. The casino is from slots and other gaming its revenue streams: takings
ings, the original and still by also likely to benefit this year operations rose by nearly 12 from participation in machine
far the largest casino opera- from the long-delayed per cent to HK$958.7m operations multiplied almost
tor in Macau, drop by more opening of the enormous (E92.1m) ninefold to $3.4m (E2.5m).
than half. hotel under which it sits: the Chairman Stanley Ho com- However, those from table game
The company saw GGR go company has already reported mented: “Our results in 2008 products fell to a third of their
down by nearly 13 per cent to occupancy levels that are reflected the general eco- previous level at $1.8m (E1.3m).
HK$27.99bn (E2.72bn) in the exceeding expectations. nomic conditions and spe- The company, 40 per cent
year: net revenues from Across the company, VIP cific challenges to our owned by Melco, has also been
gaming totalled HK$17.08bn gaming operations accounted industry that characterised affected by a change in the reg-
(E1.66bn) with revenues from for 57.1 per cent of gaming the year, particularly during ulatory regime in Cambodia,
other streams adding another revenues in 2008, down from the second half. However, we which required slot operators to
HK$310.4m (E30.1m). 64.1 per cent in the previous have continued to earn a sig- obtain additional licences
However, outgoings exclud- year. The company has closed nificant profit while making forcing the temporary closure of
ing tax did not fall as fast, down and merged several VIP rooms operational improvements certain venues in December.
by just under nine per cent to in order to focus activities in across the group, and our Since then, further changes
HK$16.71bn (E1.62bn). Net the Grand Lisboa: SJM now Grand Casino Lisboa has gone mean that the company is now
profit fell by more than 56 per has 40 VIP rooms, down from from strength to strength. focusing its entire attention on
cent to HK$655.5m (E63.6m). 75 in 2007, and 180 VIP tables, With a deliberately careful the NagaWorld casino and its
In its statement, the down from 305. The reduc- approach to growth, SJM con- 200 machines there - Elixir had
company said: “The decrease operations, caused principally rate or house-win percentage tion saw average daily win per tinues to be one of the most been operating almost 500
in gaming revenue in 2008 by credit market conditions in VIP gaming operations table increase by three per financially sound casino oper- machines in the country.
was primarily due to a decline that affected VIP promotion declined slightly…Other cent to HK$181,470 ators in Macau and the leader Chairman and CEO Clarence
in revenues from VIP gaming business. In addition, the hold factors that contributed to (E17,618); at the Grand Lisboa in terms of market share.” Chung said: “During the past six
months, Elixir Gaming has taken
significant steps to enhance our
financial flexibility while solidify-
shufflingoff $20.3m (E15.1m) or 59 per his role to Tim Parrott. Yoseloff ing our base of electronic
SHUFFLE MASTER INC cent of total revenue. said: “Shuffle Master continues gaming machines on participa-
Shuffle Master has to execute well in a tough tion to support ongoing and sus-
Currency fluctuations in managed to reduce its quar- market…Our suite of innova- tainable growth…[Agreements
Europe and Australia pushed terly operating expenses by tive and relevant products is with Elixir International and
Shuffle Master’s Q1 revenues 42 per cent to $17m (E12.6m), essential to operators - now Shuffle Master] provide Elixir
down nine per cent year on helping it towards an improve- more than ever - and as I offi- Gaming with additional liquidity
year to US$34.5m (E25.7m). ment in gross margin of two cially hand over the reins to to fund our operations and
At last year’s rates the fall was points to 60 per cent. Adjusted the new CEO…I feel more con- pursue new growth initiatives.”
a much less dramatic three EBITDA for the period was up fident in the long-term growth
per cent. It is historically the 53 per cent to $9.1m (E6.8m); and sustainability of this
worst quarter for the the company is well within its company than I did walking
company. required debt ratio and fore- through the doors of Shuffle
Lease and service revenues sees no problems in its April Master nearly 15 years ago.”
for the three months to the repayments.
end of January, however, These were the last results
Mark Yoseloff has now left
achieved a new company to be presented by CEO Mark
the stage after 15 years at
record, up eight per cent to Yoseloff, who has now ceded Shuffle Master
52 May 2009 • businessnews
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