internationalcasinoreview Business NEWS
Melco Crown rides Macau boom
watermargin MELCO CROWN ENTERTAINMENT
The rise and rise of gaming rev- enues across Macau has not passed Melco Crown by. The company turned a profit for the first time in the first six months of 2011 off a sharp rise of almost 55 per cent in revenues.
The company’s two casinos - the
flagship City of Dreams and the original Altira Macau - plus its Mocha Clubs chain of slot venues, together generated net revenues of US$1.77bn (E1.29bn). Revenues from gaming were up 53.2 per cent to $1.69bn (E1.25bn), with a four- fold increase in revenues from enter- tainment, retail and other to $41.2m (E30.1m) - due almost entirely to the success of the House of Dancing Water show. Lawrence Ho, co-chairman and CEO of Melco Crown, said: “The House of Dancing Water [cele- brates] its first anniversary in Sep- tember. Since its grand opening last September, this spectacular extrava- ganza has become a phenomenal attraction and has earned plaudits from audiences and critics alike. The show has entertained over 700,000 guests with occupancy levels above 90 per cent on average per show. [It] has significantly rein- forced City of Dreams entertain- ment proposition and has generated meaningful positive ripple effects throughout the business, including
higher property visitation, hotel occupancy rates and gaming spend.”
Room revenues in the first half
were up 25 per cent to $49.3m (E36.1m), while food and beverage revenues rose a much more modest seven per cent to $29.3m (E21.4m). Having turned a loss of $42.6m (E31.2m) in the first half of 2010, the company generated a net profit in H1/2011 of $73.8m (E54m) despite higher financing costs. Fully 90 per cent of the net profit
for the half was generated in the second quarter, which saw revenues of $959.9m (E702.6m), up 67.3 per cent, with a net profit for the period of $66.7m (E48.8m), from a loss of $30.1m (E22m) a year earlier. In the three months to the end of
June, City of Dreams saw net rev- enues of $607.9m (E445m), up 96.5 per cent on 2010. Rolling chip volume was $19.3bn (E14.13bn), an increase of 59 per cent. The win rate at the VIP tables was 2.8 per cent, within the expected range. Drop at the mass-market tables was $750.5m (E549.4m), up 55 per cent from the prior year quarter. The hold percentage rose 1.6 points to 23.6 per cent, and above the range. Drop at the slots was up 24 per cent to $568.9m (E416.4m). At Altira Macau, which has strug-
gled in recent news, there was better news, although it is still lagging behind competitors. It saw an increase in net revenues of 35.1 per
EDITORIAL
Editor: Phil Martin Email:
pm@sjc.co.uk Tel: +44 (0)161 236 6669
Casino Review is the premier b2b publication for the international casino and gaming industry. With a combined print and digital circulation in excess of 14,000 per month, Casino Review has become the first choice read of casino operators, legislators and senior casino executives. Sign up for your free digital version at
www.casinoreview-online.com
Published by: GBmedia corporation ltd
Deputy Editor: Hugh Sorrill Email:
hs@sjc.co.uk Tel: +44 (0)2476 678 077
Managing Editor: Ken Scott Email:
ks@sjc.co.uk Tel: +44 (0)1273 699 900
Contributors: Alex Lee, James Walker
ADVERTISING Andrea Murphy. Email:
amurphy@gbmedia.eu Neil Judson. Email:
njudson@gbmedia.eu Tel: +44 (0)1204 396 397 Fax: +44 (0)1204 392 748
60 October 2011 • businessnews PRODUCTION
Designer: Gina Lloyd Email:
gl@sjc.co.uk
Ad Production: Dave Roderick Email:
gdk@sjc.co.uk
Editorial & Production Office: 20 New Road, Brighton BN1 1UF, UK Tel: +44 (0)1273 699 900
Printed by: Stephens & George
Altira Macau has seen an increase in business but it is still lagging behind the other casino resorts
Novomatic sees strong revenue growth in H1
The world’s second largest slot machine manufacturer and a significant player in international casino operations, Novomatic, has seen its takings soar in the first half of 2011, with the Italian VLT market driving the growth.
broadandfast NOVOMATIC GROUP
A spectacular show has helped to drive business to the City of Dreams but the continuing dramatic increase in gaming activity across Macau has been the principal factor in much improved figures.
cent to $311.5m (E228m). Rolling chip volume was up 39 per cent to $13.2bn (E9.66bn). Win rate fell by 0.1 points to 3.1 per cent, still however above the expected range. Drop at the mass-market tables was up 93 per cent to $147.7m (E108.1m) with a hold of 15.8 per cent, down from 18.2 per cent a year earlier but still within the expected range.
At the Mocha Clubs, which
operate around 1,600 machines, net revenues were $32.4m (E23.7m) in the second quarter, up 20.4 per cent. Net win per machine per day was up 23 per cent to $226 (E165). In the period, the company announced the successful acquisi- tion of a 60 per cent interest in the Studio City project on Cotai: it is looking at debt financing options to fund the project. It has also announced a proposal to list on the Hong Kong Stock Exchange, in addi- tion to its NASDAQ listing in New York. “We believe the dual listing will make a major contribution towards the dynamic development and growth of the company in the long term,” said Ho.
Novomatic’s broad portfolio of busi- ness operations helped it achieve strong revenue growth in the six months to the end of June, compared to a year earlier, the company has reported. Consolidated revenues rose 17 per cent to E654.7m, due to an increase in proceeds from proprietary gaming operations, from online gaming and from rentals in its core Italian market. EBITDA reached E225.7m bringing an operating profit of E108.6m - similar to the previous year. The EBIT margin reached 16.6 per cent. Net profit for the period amounted to E52.8m, a decrease of 7.8 per cent over the same period in the previous year. The drop, said the company, was mainly due to the increase in financial costs associ- ated with the complete takeover of online subsidiary Greentube. Exclud- ing this one-time charge, net profit was E67.8m, 18.3 per cent ahead of the previous year’s results.
The average number of employees
rose by 13.4% per cent to 11,493, of which more than 2,500 are based in Austria.
CEO Franz Wohlfahrt said: “We have managed to substantially increase our group revenues. Our EBIT margin of 16.6 per cent shows the remarkable profitability of our operations. The acquisitions realised this year have, in addition, further strengthened our position on our core markets of Germany, Italy and Austria. This is why I look ahead with optimism.” The year to date has seen some substantial acquisition deals being done. In January it acquired just over 92 per cent of Spielbank Berlin, at Potsdamer Platz in the German capital. Spielbank Berlin boasts among the largest revenues of live game casinos in Germany. At around the same time, it acquired 70 per cent of the shares in Empire Games, a developer and manufacturer of gaming machines in the UK.
SUBSCRIPTIONS
Subscriptions: Sarah Haworth Email:
shaworth@gbmedia.eu Tel: +44 (0)1204 396 397 Fax: +44 (0)1204 392 748
www.casinoreview-online.com
Publishers
GB Media Corporation Ltd Bolton Technology Exchange 33 Queensbrook, Bolton BL1 4AY, UK Tel: +44 (0)1204 396 397 Fax: +44 (0)1204 392 748
Publisher: John Sullivan Email:
jsullivan@gbmedia.eu
In July, Novomatic increased its stake in
G.Matica, one of the ten con- cessionaires for VLTs in Italy, with con- cessions for up to 2,236 machines. The company now owns a majority stake of almost 81 per cent. In addi- tion, Novomatic is the largest supplier of VLTs in Italy to all concessionaires. By the end of this year, about 10,000 terminals will have been installed. The recently announced further rollout will provide a strong base for sustainable growth in this market in the next couple of years, the company said. In August 2011 the company
acquired the remaining 30 per cent of Greentube Internet Entertainment Solutions GmbH, to bring it 100 per cent under the ownership of Novo- matic. Vienna-based Greentube pro- vides content to licensed B2B customers.
Looking ahead, the company said it assumes that the positive develop- ment of its business in Germany and in Italy will continue. In order to exploit further market opportunities, the company is planning to take part in a partial tender for a total of 15 casino concessions for Austria and for one VLT licence in the country’s states. “We expect to achieve substantial
revenue growth in 2011 as a whole. The ongoing rollout of VLTs and of the related networks in Italy has become a priority for Novomatic,” the company said. “A goodly portion of the investments is foreseen for Italy. [We expect our] Italian subsidiaries to achieve further growth in revenues and earnings.
Macau revenues surge again August gaming revenues in Macau rose 57 per cent year-on- year to 24.77bn patacas (2.25bn), the SAR’s regulator has reported. Having long-since overtaken Las Vegas as the world’s gambling capital by revenue, it is on track to outstrip its erstwhile rival by five times this year. Despite the persistent gloom in the world economy, China’s burgeoning numbers of the wealthy show no signs of wanting to rein back.
Novomatic CEO Franz Wohlfahrt
Opinions expressed in this publication should not be regarded as the official view of GB Media Corporation Ltd, except where stated. Views, opinions and recommendations contained in this publication are put forward for consideration only. No action should be taken in reliance upon any such views, opinions or recommendations. Neither GB Media Corporation Ltd nor contributors accept any responsibility for any loss occasioned to any person howsoever caused or arising as a result of or in consequence of action taken or refrained from in realiance on the contents of this publication.
Notes for contributors
The Editorial Board welcomes the submission of articles for consideration by the editor with a view to publication. Articles submitted will not be returned and accordingly contributors making submissions should retain copies. Submission of an article will be held to imply that the article contains original unpublished work which GB Media Corporation Ltd may lawfully publish. All submissions are made at the owner’s risk.
© GB Media Corporation Ltd 2011
All rights strictly reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission is given, full acknowledgement of author, publisher and source must be given.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68