CR59-p60&61-Business 1&4:SJC-Casino Review 19/8/07 12:53 Page 2
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MGM Mirage reported its highest ever second Wynn Resorts reported second $300-a-night hotel rooms with
quarter earnings with net revenues up to US$1.9bn, quarter revenue that doubled to overnight guests. Wynn Resorts
Records all
a 10 per cent rise on the quarter last year. $687.5m, beating estimates by plans to continue expanding in
over the
Revenues on The Las Vegas Strip increased seven more than $100m. Wynn Resorts Macau, with a 123,000-square-foot
Strip for
per cent with MGM Grand earning Property EBITDA Macau casino contributed 42 addition to its current property.
of $108m, a 43 per cent increase from last year’s percent of operating income whilst Wynn Resorts has development
MGM second quarter and its best quarter ever. The Mirage,
Wynn Macau up to 42 per
Wynn Las Vegas almost tripled its rights to 54 acres on Macau’s Cotai
New York-New York, TI and Excalibur all recorded cent of Wynn’s income operating profit by drawing more Strip, where it may build as many as
their best ever second quarter results. gamblers and filling more of its three casinos in the next five years.
Sands booming at home and abroad
homerun to $235.5m, while revenue at the Sands providing a potential lift to the stock.
LAS VEGAS SANDS Macao increased 21.6 per cent to Robert A. LaFleur of Susquehanna Finan-
$377.4m. cial Group was pleased with strong
Widely tipped to be coming to Europe, Stifel Nicolaus & Co. analyst Steven increases in gaming and non-gaming
shares in Las Vegas Sands climbed on Wieczynski said in a note that the amenities at the Venetian in Las Vegas. “Las
better-than-expected second-quarter company had solid results in both Vegas Sands continues to have the most
performances from its Las Vegas and Macau and Las Vegas. He also sees the dynamic development pipeline in gaming,
Macau properties. opening of the Venetian Macau later with significant projects currently under
Revenue at The Venetian in Las Vegas this month and the December construction in Macau, Singapore, Las
increased 14 per cent from a year ago opening of the Palazzo in Las Vegas Vegas and Pennsylvania,” he said.
Revenue
quarter results reflect strong progress
toward transitioning VendingData to a
Gaming Partners’
distributor based model as increased
sales of shuffler and DeckChecker
rise for
products during the period include
shares drop on Macau
sales to our new global (non-Asia) dis-
tribution partner AESI and our Asia-
Vending
based partner, Elixir. uncertainty
“VendingData’s progress in growing its
gaming related revenues is highlighted
Macau is playing such a big role in analysts’ valuations of
Data
by the $1.3m, or 56 per cent, increase in
such revenues through the first half of
companies from all over the world that uncertainty over just one
2007 compared to the same period in
deal has caused one analyst to downgrade stock, such are the
2006. This growth is being achieved rewards when a new casino opens or an existing one expands.
across every market we currently serve,
particularly in the European and Asian numbersup Our international sales con- chips including our exclusive
gaming markets as we achieved a 50 per GAMING PARTNERS INTERNATIONAL tinue to be variable in the rights to manufacture and sell
cent, or an approximate $0.9m revenue short term and highly RFID gaming chips in the
increase from these markets in the first Shares in chip specialist dependent on activity in United States. In fact, my per-
half of 2007 compared to the same Gaming Partners International Macau. In the United States sonal belief in the exciting
period last year. Our growing worldwide slid this month as a ThinkE- we continue to see strong potential for RFID technology
product acceptance and stronger sales, quity Partners analyst down- interest in RFID technology in this industry was the key
service and distribution capabilities have graded the stock on concerns and the information benefits factor in my decision to renew
positioned VendingData to achieve over Asian competition. it provides. While we have my contract with GPI for two
further gaming revenue growth as evi- In stark contrast, as the not yet seen the widespread more years.”
denced by AESI’s recently executed pur- company’s earnings fell, results adoption of the technology, Analyst Traci Mangini of
marketdata chase orders totalling approximately published at the same time we have high expectations ThinkEquity Partners said she
VENDINGDATA $250,000, primarily for shuffler prod- managed to top Wall Street’s for worldwide adoption of remained confident in Gaming
ucts, which we’ll deliver during the expectations. RFID in the long term. Partners’ market presence in
VendingData’s total revenues for the current quarter. In addition, AESI’s Euro- For the second quarter of “Despite our short-term Europe and North America,
second quarter of 2007 rose to approxi- pean subsidiary has verbal commitments 2007, the company reported results, we remain optimistic but had worries about weak-
mately $3m compared to total revenues for 134 ShufflePro products which we revenues of $14.8m, a decrease about the future based on our ness in Asia. Mangini said in a
of approximately $1.7m in the prior expect to close and deliver during the of 24 per cent compared to rev- expectations for the continu- note to clients that her con-
year period. second half of 2007. enues of $19.4m for the second ing worldwide growth in the cerns were confirmed during
The increase in revenue reflects a “In June 2007, we entered into an quarter of 2006. Gross profit gaming industry and a leading a trip to Asia, leading to a more
modest increase in revenues generated agreement with Elixir which, if approved for the quarter was $4.6m. The position in the global casino conservative stance on the
by the sale and rental of gaming products by shareholders, will significantly trans- drop in revenues was due to currency market. We have a likelihood Gaming Partners
and approximately $1.7m in revenues form our business model and create a fewer chip sales to casinos in strong foothold in the emerg- will secure a Wynn Macau
from non-gaming operations that the platform that will allow our shareholders Macau and a decrease in sales ing market for RFID gaming expansion chip order.
company did not have last year. An to participate in the significant growth of of high-margin products. The
increase in sales of the shuffler and Deck gaming throughout the Asian market. gross margin decrease is pri-
Checker product lines of approximately Elixir is strongly positioned to leverage marily driven by the significant
$1m represented growth of 194 per cent, its world-class distribution capabilities, decrease in production volume
although it was offset by a decrease in partnerships in the region, capitalisation and a decrease in the sales of
casino chip sales of approximately and growing slot machine content to high-margin products.
$0.8m. For the second quarter of 2007, quickly build an installed base of slot Gerard Charlier, president
VendingData incurred a net loss of machines on a participation revenue and CEO of Gaming Partners
approximately $4m, or $0.13 per share, model throughout Asia. We expect to International, said: “While the
reflecting in part higher expenses related issue announcements regarding initial results for the second quarter
to an acquisition completed in July 2006 contracts for such slot machine place- were improved significantly
and higher non-cash selling, general and ments beginning next week. We are from the first quarter in terms
administrative expenses. excited about our agreement with Elixir of revenue and a return to
Mark Newburg, CEO of VendingData, and its potential long-term benefit to profitability, we are still dis-
said: “The company’s 2007 second shareholder value.” appointed in the numbers.
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September 2007 businessnews 61
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