Macau

Gross gaming revenue rose 21.3 percent in November to 30.17 billion patacas ($3.77 billion) from the year-ago month, according to figures from the Gaming Inspection and Coordination Bureau. That compares with an almost 32 percent gain in the previous month, during the October Golden Week holiday. The latest figures put the cumulative total for gaming revenue this year at 327.28 billion patacas, an 18.6 percent gain over the same period a year ago.

 

Macau’s junket operators are seeking to expand their operations across Asia as VIP revenue in Macau drops to its lowest share since 2006, according to a Reuters report. 

The period of peak growth for VIP gambling revenue in Macau has peaked, but growth is still likely to double by 2018, driven by the so-called premium mass market, local media cited Billy Ng, a Bank of America Merrill Lynch gaming analyst as saying. Macau’s annual casino revenue can “reach US$85 billion in the coming five years,” he said.

Louis XIII Holdings, which is developing a boutique casino resort on the Cotai Strip, is reporting an interim loss per basic share of 14.5 Hong Kong cents, compared with a restated profit of 34.6 cents a year earlier. Turnover rose 3 percent to HK$3.55 billion.

A U.S. federal commission has recommended further study of Macau’s gaming sector, saying there is “significant” risk of money laundering and terrorist financing. However, the report by the U.S.-China Economic Security Review Commission said it “did not seek nor did it find evidence of wrongdoing by any U.S.-based casino company, either in Macau or in Las Vegas.”

The costs for Macau’s casino operators continued to rise last year, with operating expenses gaining 24 percent year-on-year, according to the Gaming Sector Survey 2012. Pay for workers in the sector was up 17 percent. However, total receipts also grew, rising 14 percent to 306.82 billion patacas. Receipts from the gaming sector have registered double-digit year-on-year growth over the past five years except in 2009.

Sands China has teamed up with former England football captain David Beckham to promote the casino’s restaurants and shops. No further details were given of the co-branding venture.

Kingston Financial Group is reporting that profit in the six months to the end of September rose 34 percent to $341 million, with combined gaming revenue from the company’s two Macau casino hotels gaining 11 percent. Group gaming revenue was about HK$329.58 million ($42.5 million) for the period, compared to HK$297.97 million in the year ago period.

France’s Bouygues has won a contract worth 360 million euros ($488 million) to build a six-star hotel in Macau for Melco Crown Entertainment. The 39-floor building will be part of the City of Dreams and will have 783 bedrooms, a casino, restaurants, conference room and a sky pool, the company said. The project is expected to take at least three years to complete.

SJM’s Angela Leong On-kei is backing calls by the  Macau government for casino operators to move more locals into executive management positions.  In his policy address last week, Chief Executive Dr Fernando Chui Sai-on said that the long term direction would be towards ensuring that a “certain percentage” of locals are appointed to managerial positions as the economy develops and their academic achievements improve.  Until now, foreigners have tended to hold the top positions due to their greater experience in bank financing and share promotion.

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