Supplier News

China – VIP and mass market booms for Macau Legend

By Phil - 27 August 2013

Having launched on the Hong Kong stock exchange in July, Macau Legend Development Limited has seen half year gaming revenue increase by 19.2 per cent year on year to HK$623m.

The surge has come from both the mass market and VIP sectors with revenue from mass market tables and VIP Rooms increasing by 20.8 per cent and 17.7 per cent, respectively.

Macau Legend Development, one of the leading owners of entertainment and casino gaming facilities in Macau. It has two major properties, The Landmark Macau, an award-winning integrated hotel, casino and luxury complex, featuring a five-star hotel and Macau’s first themed casino, and Macau Fisherman’s Wharf, an integrated gaming, hotel, convention and entertainment complex located on the outer harbour of the Macau Peninsula.

In addition to operating its hotels and non-gaming entertainment facilities, Macau Legend Development provide gaming services to Sociedade de Jogos de Macau, (SJM) at Pharaoh’s Palace Casino, which is located in The Landmark Macau, and Babylon Casino at Macau Fisherman’s Wharf.

Co-Chairman, Executive Director and Chief Executive Officer, David Chow, said: “The increase in gaming revenue was primarily driven by the increase in revenue from both the mass market and VIP gaming segments at Pharaoh’s Palace Casino and the consolidation of revenue from gaming services of MFW Group at Babylon Casino of HK$69.2m for the full reporting period.”

“The Group’s reported profit for the period amounted to HK$266.7m. When we exclude those One-off Listing Costs associated with the Listing, the group’s profit for the period amounted to HK$306.2m, an increase of HK$18.6m or 6.5 per cent over that of the last corresponding period of HK$287.6m.”

Mr. Chow added: “This is the group’s first results announcement following our successful listing on the Hong Kong Stock Exchange on 5 July 2013, and we are pleased that the first half of the year was very fruitful. During this period, we recorded encouraging results and the redevelopment project of Macau Fisherman’s Wharf also progressed as planned in terms of timing and costs.”

The group has a total of 325 slot machines and 150 gaming tables in its two casinos, Pharaoh’s Palace Casino at The Landmark Macau and Babylon Casino at Macau Fisherman’s Wharf, including 60 mass gaming tables and 67 VIP tables. Babylon Casino has 23 mass gaming tables. On 27 July 2013, a new VIP room utilizing 6 of these gaming tables commenced operation. The group is now screening for a gaming promoter to operate the other VIP room at The Landmark Macau.

For the six months ended 30 June 2013, the group posted a total gaming revenue of HK$623m, a 19.2 per cent increase as compared to that of HK$522.5 million in the last corresponding period.

The average number of mass gaming table at the Pharaoh’s Palace Casino was reduced from 66 to 60 for the six months ended 30 June 2012 and 2013, respectively as tables were relocated to VIP rooms at The Landmark Macau. This increased the average number of VIP tables to 59 in the current period from 52 in the last corresponding period.

Upon completion of the MFW Redevelopment Project, Macau Fisherman’s Wharf is expected to have over 1,300 rooms and around 350 gaming tables.

Carl Tong, Co-Chairman and Non-executive Director, said: “We are confident in the long-term growth prospect of the Macau gaming industry. The Macau government’s support in terms of policies and infrastructure improvements will further facilitate the influx of visitors. The redevelopment of MFW will transform tourism in the Macau Peninsula, offering one-stop family entertainment as well as cultural and educational experiences.”

Mr. Chow added: “As the Company completes the MFW Redevelopment over the next few years, the group will benefit from opportunities created by the completion of major transportation and infrastructure networks in Macau. Upon completion of the MFW Redevelopment, the number of hotel rooms of the Group will increase from the current of 511 to nearly 1,800 and the number of gaming tables at the casinos in The Landmark Macau and MFW will increase from current of 150 to 500. We are well positioned to capture the opportunities ahead of us.”

The company entered into a Memorandum of Understanding with Dynam Japan Holdings in August to introduce a minimum of 100 next generation pachinko machines and other electronic games at various sites at MFW commencing in 2014 and establish marketing joint venture agreement for customers in Japan and Korea.