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CR62-p63-Business3:SJC-Casino Review 25/11/07 02:16 Page 1
casinoreview
Slot manufacturer WMS saw its of participation games increased The owners of Crown Macau, Melco PBL, has signed up Ama
revenues increase by a fifth in its by another 19 per cent to 8,351 International to arrange junkets to the casino. The ‘gaming
WMS
first quarter of the financial year, machines. CEO Brian Gamache
Melco PBL
promotion’ agreement is one of 20 the company has entered
reaching a record $132.5m said: “We are delivering consistent into with licensed promoters in Japan, under which Ama
revenues (89.5m euros). New unit financial growth fuelled by our signs on agrees to promote VIP gaming business exclusively at Crown
up 20%
shipments totalled nearly 4,900, focus on both product sales and
junket firm
Macau. Ama has appointed a number of collaborators to
fuelled by a 19 per cent rise in gaming operations revenue growth consolidate existing business under the three-year agreement,
international shipments, and the while simultaneously driving higher which is now before the Macau government. It is expected to
ever more important installed base operating margins.” go into effect before the end of the year.
Big projects costs
Las Vegas Sands Venetian Macau,
which opened in August
Sands a third
quarter profit
With one of the most ambitious development programmes underway, Las Vegas
Sands is paying for its swift expansion in both Asia and the US, recording a Q3 loss.
However, with two apparently successful properties in Macau and landmark
operations in Las Vegas, analysts believe the company is perfectly sound.
shiftingsands in Macau, Singapore and the US. William Weidner, president of casino volume. Additionally, slightly to 6.2 per cent from 6.5 normal hold percentage, the
LAS VEGAS SANDS The underlying health of the and chief operating officer, said: we are very excited to be prepar- per cent last year. Total casino benefits of our targeted capital
company, however, is strong “On 28 August 2007, Las Vegas ing to open the Palazzo, our revenues fell by 6.9 per cent to investments have continued to
Las Vegas Sands took a hit in its with revenues in the three Sands opened Macau’s first full- newest resort on the Las Vegas $83.1m (56.2m euros), down contribute to growth,” said
third quarter, running to an oper- months to the end of September scale integrated resort, the Vene- Strip. We expect this breathtak- from $89.3m (60.4m euros) a Weidner. “Our gaming volumes
ational loss of $20.8m (14m reaching $661m (446.7m tian Macau, and took our first ing 3,066-suite hotel to set a new year ago. This was partially offset were strong, as table games drop
euros) compared to an operating euros), up 19.5 per cent on steps toward realising our standard for luxury and opu- by increased revenues from increased nearly 35 per cent
surplus of $133.5m (90.2m Q3/2006: although the share vision of transforming Macau lence in Las Vegas and we look hotel sector and from F&B and year over year…Our ongoing
euros) in the same period in 2006. price fell on the news of the loss, into Asia’s premier business and forward to the opening.” entertainments, however, efforts to manage our costs
The company blames the it has since picked up as analysts leisure destination…As the first Table games in Vegas saw a overall operating income from across the property continue to
$154.3m (104.3m-euro) short- have examined the figures in Cotai Strip property to open in win of just 14.7 per cent com- operations in Las Vegas fell 45.8 benefit our adjusted property
fall on pre-opening expenses closer detail. Nevertheless, earn- Macau…the Venetian Macau pared to 23.7 per cent in 2006: per cent to $29.6m (20m euros). EBITDAR at the Las Vegas prop-
related to the launch of the Vene- ings in the period fell by 18.9 has received extremely posi- the company’s target is a result “Although our quarterly erty, and we expect the opening
tian Macau, which opened at per cent to $164.3 (111m euros) tive reviews and welcomed mil- in the 20-22 per cent range. Win results were negatively of the Palazzo to generate sig-
the end of August, and of the with players winning more on lions of guests from around the from slot machines fell very impacted by a lower than nificant operating efficiencies.”
Palazzo resort in Las Vegas due the tables and an increase of region. We were honoured to
to open just before Christmas. It $27.6m (18.7m euros) in depre- receive tremendous support
is also having to spend money ciation and amortisation from all our constituencies
on its other development plans expenses, said the company. throughout the region, as we
Adjusted net welcomed nearly 3.9m guests
income for the in our first 65 days of opera-
period was $41.8m tion, including 114,000 guests
(28.3m euros), in our first 24 hours.”
down a hefty 64.6 He continued: “In Las Vegas,
per cent on 2006. despite the negative impact of a
Net loss was $48.5m lower than normal, table games
(32.8m euros) win percentage, the Venetian
against a net profit has continued to perform
of $97.3m (65.8m extremely well, delivering
euros) last year. strong growth in every category
Harrah’s report
Q3 improvements
onwardsandupwards
Caesar’s Palace,
HARRAH’S ENTERTAINMENT
Las Vegas
Harrah’s Entertainment has
reported a 13 per cent year-on-
year increase in third quarter
revenues, reaching $2.85bn
(1.93bn euros). Income from
operations was up to $577.2m
(390.1m euros) from $441.9m
(298.7m euros) in 2006. Net
income rose 37.9 per cent to
$244.4m (165.2m euros).
Operational income from
Las Vegas, where the company Just after the period, the during which it announced a
has eight casinos, including the company announced that it $1bn (676m-euro) expansion
Caesars Palace, Paris and would be rebranding the and renovation project for
Bally’s, contributed $212.8m Grand Casino Tunica as Caesar’s Palace in Las
(143.8m euros) up 10.8 per cent Harrah’s Casino Tunica: the Vegas, that will include con-
on 2006, while Atlantic City venue failed to impress during struction of yet another hotel
added another $141m (95.3m the quarter and will undergo tower as well as a convention
euros), up 3.5 per cent and extensive renovation costing centre by 2009. In co-opera-
operations in Louisiana and $45m (30.4m euros) to bring it tion with AEG, the company
Mississippi reached $123.7m back up to the standard the is also to build a 20,000-seat
(83.6m euros), a dramatic but company expects. sports and entertainment
not entirely unexpected rise of The quarter was an event- arena on the strip, expected
67.8 per cent. ful one for the company, to open in 2010.
December 2007 businessnews 63
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