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CR82-p44,46&47-Business:SJC-Casino Review 26/7/09 10:00 Page 1
Maltese slot tax revenues sinking
The Maltese finance minister has said that taxes from slot
machines in the island state’s four casinos fell from E6.9m in
2007 to E6.1m in 2008, a fall of 11.6 per cent. There was,
however, a slight increase in receipts from company and
profits taxes and social security contributions. The casinos
employ more than 700 people.
Louisiana revenues swing back
otherside year-long decline in rev- still 5.7 per cent down on $30.1m (E21.6m), less than New Orleans casino, the that was a 10.9 per cent drop
LOUISIANA enues. May 2008. What is encourag- one per cent shy of the prior biggest earner in the state, from the prior year.
The riverboat casinos’ ing is that results from every year’s figure. The Eldorado there was a similar story with The number of visitors to
The one land-based and 13 gaming revenues reached venue were improved: at the Resort even saw a net year- an increase in revenues casinos in New Orleans rose
riverboat casinos in $152.5m (E109.5m), up 9.2 Auberge du Lac, revenues on-year increase of 0.4 per between April and May of to 870,568 in May from
Louisiana saw business per cent on the April figures; were up 14.2 per cent on cent to $14.2m (E10.2m). 15.6 per cent to $34m 748,970 in April and 819,824
improve in May, halting the however, the results were the previous month to At the land-based Harrahs (E24.4m) although again in May 2008.
Japanese amusements, gaming and health group Konami reported an increase in
The Aliante Station
revenues overall, but restructuring cost it dear. The gaming division saw sales
Casino in Las Vegas
contract very slightly but a much higher operating profit.
Konami holds its own
during recession
theadvantage (E26.2m), up an impressive
KONAMI GROUP 23 per cent. Station Casinos
The company said good
Although Konami’s bottom sales and increased partici-
line profits of ¥10.9bn pation in revenues had
(E83.9bn) in the year to the helped, especially in North
end of March represented a American markets.
restructuring talks
fall of 40.7 per cent, the It said: “Sales of Advantage
company is still in relatively 5, Konami’s first five-reel
good shape. mechanical slot machine and closingin
The Japan-based company the K2V (video slot machines STATION CASINOS
took a significant charge in series), which has become a
restructuring and accelerat- standard item, continued to The ‘locals’ casino operator in Las Vegas Station
ing asset depreciation in its be brisk. Furthermore, sales Casinos managed to persuade its bondholders to
largely domestic Health & under participation agree- hold off forcing the company to sell up for
Fitness division, the firm’s ments, which ensure stable another month in June.
second biggest earner, which revenues, as well as sales of In a filing with the US Securities and Exchange
has been severely affected the Konami Casino Manage- Commission, the company said its lenders had
by the very heavy recession ment System, which secure agreed to give the company a fourth extension to
in the country. regular income from main- its repayment terms in order to be able to
Overall net revenues for tenance and servicing, are complete negotiations on its restructuring plan - a
the group were ¥309.8bn also on the rise allowing forbearance agreement.
(E2.4bn), an increase of 4.2 Konami to steadily increase Station Casinos, which owns and operates 13
per cent, but the ¥11.1bn its market share.” venues in the Las Vegas area, was taken into
(E85.8m) spent on the The picture in its other private hands by its former major shareholders
restructuring was the major large market was not so rosy, the Fertitta family and private equity company
factor in pushing costs up by however: “Demand has Colony Capital in November 2007 through a
more than seven per cent to decreased in the Australian leveraged buy-out. The company’s resulting
¥282.4bn (E2.2bn). market due to the economic current debt of around $5.7bn (E4bn) is more than
The biggest division is slowdown, restrictions 13 times its earnings last year, one of the highest
Digital Entertainment, which placed in key states on the ratios in the industry - a figure that will only get
makes games for computers, number of machines worse as the recession cuts through the spending
consoles and online plat- installed, the impact of power of the market it relies on so much.
forms, manufactures arcade smoking restrictions in clubs Despite this, the company has managed so
games and also manages and pub and tax code revi- far to keep the wolves at the door from
amusement arcades. Its rev- sions. The sale of Konami barging in. In the first quarter, Station reported
enues for the year were slot machines has been losses of $33.7m (E24.2m); however, this was
¥187.6bn (E1.4bn) - or 60.6 affected as well.” a much-shortened figure than the $70.9m
per cent of the total. Kagemasa Kozuki, repre- (E51m) loss reported a year earlier and
The Gaming & Systems sentative director of Konami included a gain of $40.3m (E29m) resulting
division, through its two sub- Corporation, commented: from early debt retirement.
sidiaries US-based Konami “In the fiscal year…the loss The operator wants the holders of $2.3bn
Gaming and Konami Aus- of momentum in the global (E1.4bn) of bonds to exchange them for new,
tralia, contributed just under economy intensified, as group remains difficult. With Konami’s lower-cost instruments during a quick dip into
six per cent of the total bring- financial turmoil in the that said, we will respond
Chapter 11 bankruptcy protection measures. The
ing in ¥18.3bn (E141m) in United States spread to with flexibility and speed to
in Tokyo,
Fertittas and Colony have promised to invest
net revenues. That was down Europe, Asia and elsewhere.” changes that emerge and will
another $244m (E175.6m) if bondholders agree.
by just 0.7 per cent. The Noting the rise in income make every effort to develop The last forbearance agreement expired at
company managed to to record levels, despite the and deliver products and the end of May, adding pressure to the
control the costs in the divi- recession, he added: “The services in the areas of enter- company’s executives despite an agreement
sion, allowing it to show an outlook for the business envi- tainment and health that to continue the negotiations that would keep
operating profit of ¥3.4bn ronment surrounding the many customers need.” the current owners in control.
44 August 2009 • businessnews
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