Renewed focus on “core strength”: VIPs
Macau casino operator Emperor Entertainment Hotel Ltd., which operates the Grand Emperor Hotel and the Inn Hotel in Macau, has posted a group-wide revenue drop of 5.2 percent to HK$665.6 million in the six months to September 30.
In a filing to the Hong Kong Stock Exchange, the company said casino revenues came to HKD546.7 million (US$69.9 million), a 6.8 percent year-on-year decline. Emperor pointed to “lackluster” mass performance as a cause.
“While VIP segment delivered stable performance, gaming concourse segment was lackluster as a result of capacity expansion in Cotai. Nevertheless, the group strived to enhance the table yield and improve customer segmentation, which enabled the group to mitigate, to a certain extent, the impact of heightened competition,” the report read.
Total revenue from April to September of this year was HKD665.6 million (US$85.1 million), 5.2 percent lower year-on-year. Of this, gaming operations contributed HKD546.7 million (US$69.9 million). Adjusted EBITDA was HKD194.7 million (US$24.9 million), of which HKD165.1 million (US $21.1 million) came from gaming. Hotel revenue from the Grand Emperor and the Inn Hotel Macau brought in HKD118.9 million ($15.2 million), or 17.9 percent of total revenue for the two quarters.
The company said it’s “still positive regarding the long-term growth prospects for Macau’s gaming market given the increasing visitation and penetration of Chinese tourists to the city.” It noted that the newly opened bridge connecting Mainland China to Macau “provides an underlying support for a sustained growth.”
The company also said it will be focusing on ways to enhance its VIP segment, its “core strength.”
“The group is devoted to leverage on its competitive advantages and capture value-creating opportunities in Macau,” said Emperor.
