CR85-p75-Business 2:SJC-Casino Review 24/10/09 16:00 Page 1
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Phumelela hit by poor economy
South African betting company Phumelela saw a
Business
marginal increase in its revenues from gambling in the
year to the end of July, reaching R804.3m (E73.9m).
However, its net profit fell 37 per cent to R70.7m
(E6.5m). The company said lower disposable income
among players contributed to the lacklustre
NEWS performance. The company has now also introduced
a new mobile phone based betting service.
Shun Tak profits
up after
subsidiary sale
profittaking ten per cent in revenues to
SHUN TAK HOLDINGS HK$1.69m (E148m).
Shun Tak’s interests
The corporation that con- includes a huge portfolio of
trols most of the non- property including the Nova
gaming interests of City residential development
Inside SJM’s latest casino resort, L’Arc
Macau’s gaming doyen in Macau and One Central, a
Macau, which opened in September Stanley Ho, Shun Tak Hold- luxury development on the
ings, has reported an waterfront next to MGM
interim profit of HK$1.71bn Grand Macau. It also has
SJM weathers first
(E150m), 14 times more interests in transportation,
than for the first half of being the owner of the Tur-
2008. The size of the boJET ferries that cross the
half of 2008 as
increase is entirely due to Pearl River Delta, and sub-
the sale of a hotel-owning stantially in hotels, includ-
subsidiary, Skamby ing the SkyCity Marriott
prospects improve
Limited, to STDM, which is Hotel in Hong Kong. It also
also the parent company of owns the Macau Tower.
SJM and majority owned by
Stanley Ho. The sale netted
As Macau moves back into growth in the second half, SJM, the Shun Tak around HK$680m
corporate doyen of casino operators in the territory has reported
(E59.7m).
a slack but not disastrous first half of the year in which it used its
Excluding the sale, the
company saw its profits
market-dominant position to outperform all its upstart rivals.
Among many other
rise 42 per cent to
interests, Shun Tak
HK$120m (E10.5m) in the
owns Macau Tower
softlanding end of December 2008. The average net win per half, despite a fall of almost
SJM HOLDINGS day per VIP table rose 14.6per cent to HK$227,000
(E19,890): at the Casino Grand Lisboa, it reached
SJM Holdings, the operator of 17 casinos in HK$314,000 (E27,510) per table per day.
Macau - with another one in the pipeline - has However, the average hold across SJM fell by a
reported half year results in which gaming and 0.17 percentage points to 2.83 per cent.
hotel revenues fell off slightly but net profit was Mass market gaming revenues accounted for a
hit by higher depreciation and finance costs. healthy 40.2 per cent of the total, up from 36.8 per
Net revenues in the first six months of 2009 cent, reaching HK$5.94bn (E520m), representing
totalled HK$14.91bn (E1.31bn), a decline of 3.9 growth of 4.6 per cent on the previous year. Improved
per cent on the same period in 2008. Gross gaming performances at both the Casino Grand Lisboa and
Ready. Set. Grow with GSA.
revenues, which made up the lion’s share of the the Casino Lisboa were responsible. At the end of
G2E 2009 | Visit us at Booth #2192
figure, reached HK$14.79bn (E1.29bn), down 4.3 June, SJM was operating 1,137 mass-market tables, 17
per cent. Net profit sank 45 per cent to HK$280.6m fewer than six months earlier. The average daily net
(E24.6m) - the depreciation and interest costs rose win per table was HK$28,300 (E2,480). At the Grand
dramatically due to the completion of the Hotel Lisboa the figure was HK$33,000 (E2,890).
Grand Lisboa in December 2008. Slot revenues accounted for 3.3 per cent of
The company’s market leading position, for which total gaming revenue and stayed relatively con-
its historical monopoly is largely responsible, was stant bringing in HK$487m (E42.6m). SJM’s
nevertheless extended in the period. It accounted market share for this sector fell slightly to 16.3 per
for 29.6 per cent of total gaming revenues generated cent down two points despite an increase in the
in Macau in the first half, up from 27.1 per cent in the net machine park of 56 units at the end of June
prior year period. It’s hold on the mass market table compared to the end of December.
gaming revenue is strong, with 40.2 per cent, while it In a statement the company said: “During the
has to work much harder for the lucrative VIP gaming reporting period, visitation to Macau was adversely
market, of which it holds 26 per cent. affected by visa restrictions for mainland China visi-
Revenues from the flagship Casino Grand Lisboa tors that had been progressively imposed during
for the period were HK$4.06bn (E356m), leading to 2008, as well as by the global economic contraction
a profit of HK$570m (E49.9m), down by 11.2 per which began in the same year. In spite of these con-
cent and 12 per cent respectively. straints, however, Macau continued to be a major
Gaming revenues from the VIP operations tourist destination in the Asian region.”
accounted for 56.5 per cent of the group’s total It continued: “Competition in the Macau
gaming revenue or HK$8.36bn (E732m). In the same gaming industry continued to be intense, partic-
period in 2008, VIP revenues accounted for 60 per ularly in the VIP gaming segment, although there
cent of gaming revenues or HK$9.27bn (E812m). was no significant increase in the gaming capac-
The company saw a decrease in VIP chip sales of 4.5 ity…during the first five months.
per cent, down to HK$295.05bn (E25.85bn). “The group continues to pursue its strategy of
As at 30 June 2009, SJM had 33 VIP rooms in its growing its business through the development of
casinos with a total of 203 VIP gaming tables: strategically located gaming clusters in Macau, tar-
seven fewer rooms but 23 more tables than at the geting different segments of the gaming market.”
The second half got to an excellent start with the
agreement to cap commissions paid to junket opera-
tors followed by the easing of travel restrictions from
the mainland. The company has even greater expo-
sure to the potential market through the opening of
L’Arc Macau in September, which offers 170 table
gamingstandards.com
and 420 slot machines in a prime location on the
Macau peninsula. It is also well on the way to com-
pletion of the Oceanus, which could open as soon as PLATINUM
TM
the end of the year. The venue adjacent to the Mar- MEMBERS
itime Terminal is designed to cater to day-trip visitors
with 265 mass-market tables and 565 slot machines.
November 2009 • businessnews 75
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