Australian gaming machine manufacturer Ainsworth Game Technology Limited (AGT) is expecting between AU$8 million ($5.19 million) and AU$10 million ($6.49 million) in profits before tax for the second half of the financial year.
This forecast is based on preliminary management estimates and is subject to final period-end closure and audit procedures.
The company has reported an encouraging revenue growth of approximately 12 percent compared to the first half of the financial year, which recorded revenue of AU$121.4 million ($78.83 million).
Growth was observed across all geographical regions, although the digital segment faced initial setbacks due to reduced contributions from Game Account Network Limited (GAN) following the termination of exclusivity agreements.
In conjunction with the trading update, AGT has disclosed a cybersecurity incident that is currently under investigation.
While this incident has caused some disruptions to internal systems and operations, the company has enacted precautionary measures and does not foresee any material adverse effects on its forecasts for the second half of 2024.
AGT anticipates gross margins of around 62 percent for the full year, a decrease from the 67 percent margin reported in the first half. This decline is attributed to several factors, including the product mix in Latin America, competitive market conditions, and the under-recovery of production variances.
Despite these challenges, the company has successfully maintained overhead costs at levels consistent during the period in analysis through effective cost control measures.
Harald Neumann, AGT’s Chief Executive Officer, expressed optimism about the company’s future performance, saying he is “encouraged by the growth in revenue during this period and expect it to continue as we release our next suite of game offerings in global markets”.
“The development initiatives we have undertaken are yielding progressive improvements in game performance, and additional game releases and hardware initiatives are expected to sustain this growth”, he stated.
Galaxy Entertainment Group (GEG) has acknowledged that hotel capacity could become a significant constraint on Macau’s long-term growth. The company is hopeful that further policy breakthroughs will facilitate the development of Hengqin, which could help alleviate some of the current limitations in the hotel sector.
This insight was shared by Goldman Sachs following a roadshow with investors in Singapore earlier this week, featuring Galaxy’s Chief Financial Officer, Ted Chan, and Senior Vice President of Integrated Resorts, Peter Caveny.
Currently, Macau has approximately 48,000 hotel rooms, with 38,000 of them rated four stars or above. This number is only sufficient to meet roughly half of the 80,000 to 100,000 daily inbound visitors Macau has been receiving in recent months. The remaining visitors are primarily day-trippers from Hong Kong or other nearby areas in the Greater Bay Area. In contrast, cities like Las Vegas boast 150,000 hotel rooms, Hong Kong offers over 80,000 rooms, and Singapore has more than 70,000.
Galaxy Entertainment’s management has emphasized that this shortage of hotel rooms underscores the need for more policy support to enhance connectivity and facilitate the construction of additional hotels in Hengqin. Over time, these efforts ‘would require ongoing coordination between Macau and Guangdong’.
In April this year, Hengqin introduced new policies allowing vacant, idle commercial buildings to be temporarily converted into hotels.
According to data from the Multi-Economic Development Research Institute of Hengqin, the average hotel occupancy rate for 2023 was 51.17 percent, reflecting the robust growth of the tourism industry.
During the 2024 Chinese New Year period, 16 key hotels in Hengqin hosted 156,000 guests, with peak-day occupancy reaching 21,000 and room occupancy hitting 97 percent.
Meanwhile, the average occupancy rate for homestays in Hengqin exceeded 80 percent, with some well-rated homestays nearly fully booked, boasting occupancy rates as high as 99 percent.
As of August 2023, Hengqin has more than 8,000 hotel rooms, of which approximately 2,000 are for business or leisure use (apartments). Reports indicate that Hengqin may increase its number of hotel rooms to 100,000 in the future, although no official confirmation has been made regarding the future scale of hotels in Hengqin.
Macau outdoor venue
It is also worth noting that Macau is about to open its first 80,000-capacity outdoor concert venue in Cotai, with the inaugural show scheduled for December 28th of this year. Meanwhile, the Macau LRT (Light Rapid Transit) train will soon launch the Hengqin Line, enhancing connectivity between Macau and Hengqin, particularly between Cotai and Hengqin. This will help alleviate traffic issues and improve overall access to the region.
Key challenge for long-term growth
The investment memo from Goldman Sachs also sheds light on the differing hotel room capacity among Macau’s major casino operators. It notes that capacity growth will be a critical driver of future expansion for Macau’s tourism and gaming sectors.
According to analysts Simon Cheung, Alpha Wang, Leah Pan, and Dorothy Wong, the key challenge lies in addressing the insufficient hotel rooms to sustain long-term growth.
‘Galaxy has 85 percent of its hotel rooms comped out. Capacity growth is the key to drive growth further down the road. One of the long-term issues the government needs to address to sustain Macau’s long-term development is insufficient hotel rooms,’ the memo revealed.
Wynn and MGM, on the other hand, are already nearing their capacity limits, with over 90 percent of their rooms already comped out.
The brokerage indicates that these operators have no major new hotel projects in the pipeline, except for MGM’s plan to add 28 villas by the end of fiscal year 2025. This focus on high-end offerings aligns with their strategy of premiumization and capturing the luxury market segment.
Galaxy, however, is in a more favorable position when it comes to hotel capacity. With 85 percent of its rooms already booked, the company plans to add 100 ultra-luxury Capella suites in mid-2025. This expansion will enhance Galaxy’s ability to compete in the high-end market.
In the medium term, Galaxy has plans to expand further with the addition of Phase 4, which will introduce 1,500 rooms under six different hotel brands. The company is also considering redeveloping its Broadway property, which currently has 320 rooms, by adding up to 1,000 more rooms.
Galaxy’s management believes that ‘having a variety of hotel brands across different segments will help enhance Galaxy Macau’s attractiveness as one of the “must-visit” properties in Cotai’.
Good morning. You can run but…POGO operators are attempting to rebrand themselves and escape oversight by procuring the business process outsourcing (BPO) label, aiming to continue operations within the country under the radar. The recent crackdown has caused an outflow of operations to nearby countries, with operators profiting off of political instability. Meanwhile, in the big city, the real estate market is suffering from the POGO exodus, but cautious optimism still exists.
The Philippines is facing an uphill battle when it comes to shutting down offshore gaming operations in the nation. Despite its best efforts, both illicit and licensed companies are now shifting into a new space beyond the scope of the law. Some of these companies are relocating to easier pastures, with the lawlessness of the Golden Triangle calling out, flaunting law enforcements’ efforts.
Asia is the most populated continent on the planet and Football is the No. 1 sport in most countries. The World Cup qualifying matches are traditionally watched by billions of fans in the region, but FIFA has decided to reward Asia with a significant representation at the tournament only now.
Altenar, a leading sportsbook provider is bringing its global expertise to Asia, looking to expand its operations. Since 2011, Altenar has powered hundreds of online sports betting sites worldwide and is a major B2B provider in Europe and Latin America licensed markets.
“Based on BI records, Roque is still in the country. There is no recorded recent attempt to depart the Philippines,” BI spokesperson Dana Sandoval clarified in a message to reporters on Monday.
The statement comes after Vice President Sara Duterte, during an online press conference on November 23rd, appeared to suggest that Roque might have already left the country.
Roque has been under an Immigration Lookout Bulletin Order (ILBO) since August, while a separate ILBO was issued against his wife, Mylah, on September 16th. Despite this, Mylah reportedly departed for Singapore on September 3rd to seek medical treatment.
The couple has drawn scrutiny for their absence during House of Representatives hearings concerning alleged links to Philippine offshore gaming operators (POGOs). Both Harry Roque and his wife failed to attend the quad committee hearings or provide requested documents, including details of their assets.
Their absence led the House to issue separate arrest orders for their failure to cooperate with the investigation.
The announcement of the Philippine Offshore Gaming Operators (POGO) ban three months ago has sent ripples through Metro Manila’s office market, culminating in the first negative net take-up of office space since the fourth quarter of 2021.
In the third quarter (Q3) of 2024, net take-up dropped by -33,000 square meters (sq.m.), driven largely by lease terminations and non-renewals, particularly from POGO operators. While these figures raise concerns for landlords with significant vacancies, other indicators suggest a cautiously optimistic outlook.
Colliers International has reported significant surrenders from POGO occupiers in the past months, with 57,000 sq.m. of newly vacated spaces in Q3 2024 and an additional 157,000 sq.m. expected to become vacant by the end of the year. By comparison, POGO operations at their peak leased approximately 1.3 million sq.m. of office space. Today, that figure has dwindled to just 275,000 sq.m., or 1.9 percent of the total office stock in Metro Manila.
Without the POGO ban, Metro Manila’s year-to-date net take-up would have reached 195,000 sq.m., exceeding half of 2023’s total of 280,000 sq.m. However, with further surrenders anticipated, Colliers projects a flat or zero net take-up by year-end, indicating no growth in occupied office space compared to 2023.
Despite the decline caused by POGO departures, other sectors have shown resilience. Traditional firms and outsourcing companies have maintained robust demand for office space, with Q3 2024 transactions surpassing the quarterly average of 174,000 sq.m. A total of 651,000 sq.m. of transactions have been recorded so far this year, with Q3 alone accounting for 192,000 sq.m. This demand signals that the exit of POGOs has not significantly dampened activity in these tenant classes.
Traditional firms, including government agencies, accounted for 53 percent of total transactions in Q3, while third-party outsourcing (3PO) firms and shared services made up 29 percent and 7 percent, respectively. Both 3POs and shared services saw significant year-on-year and quarter-on-quarter increases in transaction volumes, demonstrating a positive outlook for these sectors.
Expansion continues to be the primary driver of office space demand, accounting for 57 percent of transactions, followed by relocations at 36 percent and new setups at 7 percent. IT-BPM companies, in particular, are fueling this demand, with expansion activities concentrated in key business districts such as Makati, Fort Bonifacio, the Bay Area, Quezon City, and Alabang.
The Bay Area led leasing activity across Metro Manila, capturing 26 percent of total transactions, followed by Fort Bonifacio (18 percent) and Quezon City (16 percent). With the recent passage of tax incentives for office expansions and relocations, Quezon City is poised for further growth among traditional occupiers.
The countryside continues to see increased activity, with provincial transactions reaching 189,000 sq.m. in Q3, up from 155,000 sq.m. in the same period of 2023. Cebu remains a standout, accounting for 32 percent of these transactions, or 69,000 sq.m., performing almost on par with Metro Manila’s prime districts like Makati (88,000 sq.m.) and Ortigas (56,000 sq.m.). Provincial transactions now represent 29 percent of nationwide deals, up from the 20–25 percent range recorded in previous years, highlighting the growing appeal of these markets.
Landlords are encouraged to ramp up development in provincial areas to meet the rising demand, particularly from outsourcing firms expanding their footprint beyond Metro Manila.
Metro Manila’s overall office vacancy rate rose slightly to 18.5 percent in Q3 2024 from 18.3 percent in the previous quarter, primarily due to POGO-related surrenders. By year-end, the vacancy rate is expected to reach 20.5 percent, with markets heavily reliant on POGO tenants, such as the Bay Area and Makati Fringe, likely to experience higher vacancies.
To mitigate these challenges, landlords are encouraged to provide additional concessions for spaces vacated by POGOs. Strategies include offering tenant improvement allowances, reinstating spaces to suit traditional and outsourcing operations, and providing flexible commercial terms. Occupiers may take advantage of these spaces, especially if they align with their operational requirements.
Despite the headwinds, there are promising opportunities for landlords and developers. Low-vacancy markets, such as Makati, Fort Bonifacio, and Ortigas, are expected to recover faster than secondary markets. This presents an opportunity for landlords to enhance their offerings, including integrating features that cater to current demands for flexibility, wellness, and sustainability.
Provincial markets also continue to show upside potential, driven by outsourcing expansions. Developers are encouraged to explore these areas and align their projects with tenant expectations to capitalize on the growing demand.
While the immediate impact of the POGO ban has presented challenges for Metro Manila’s office market, the resilience of traditional businesses and outsourcing firms has offset the worst-case scenario of zero demand. By maintaining a focus on high-quality office spaces and adapting to changing tenant needs, landlords can position themselves for long-term growth.
Additionally, the outcomes of recent U.S. elections and potential policy shifts could influence global business dynamics, presenting new opportunities for Metro Manila’s office market. As the market evolves, stakeholders must remain proactive and adaptable to navigate the challenges and opportunities that lie ahead.
Despite the traditional travel season of Golden Week falling in October, the average hotel rate for all types of hotels in Macau declined.
According to the latest monthly survey from the Macau Hotel Association, published by the Macao Government Tourism Office (MGTO), all types of hotels saw a 2.8 percent decline in rates, from MOP 1,447.4 ($180) to MOP 1,406.2 ($175).
The October hotel occupancy rate reached 93.5 percent, compared to 86.3 percent during the same period last year.
Meanwhile, five-star hotels saw their room rates decline by 3.6 percent year-on-year in October, from MOP 1,634.2 ($204) to MOP 1,575.6 ($197) in October, with the occupancy rate reaching 94.3 percent.
Four-star hotels had lower occupancy rates, with the occupancy rate at 89.4 percent—below 90 percent for the first time in October this year. The room rate for Macau’s four-star hotels also fell by 1 percent, from MOP 1,199.8 ($150) to MOP 1,187.4 ($148).
The occupancy rate for three-star hotels reached 96.9 percent, with the room rate dropping from MOP 975.7 ($122) to MOP 944.8 ($118).
In the ten-month period, Macau’s overall hotel occupancy rate stood at 91.4 percent, up from 83.6 percent a year ago.The general hotel rate also saw an increase, rising from MOP 1,337.4 ($167) to MOP 1,398.3 ($174).
Among all types of hotels, all but three-star hotels registered an increase in room rates.
PopOK Gaming, a modern iGaming content developer specialised in creating premium quality casino games, has officially released its latest slot game, Lucky Clover.
This vibrant new game features colorful graphics and engaging symbols, inviting players to spin the reels in pursuit of luck and treasure.
Lucky Clover offers thrilling opportunities for exciting wins at every turn, making it an entertaining experience for both seasoned players and newcomers alike. With its charming design and dynamic gameplay, players will find themselves coming back for more.
Macau gaming operator MGM China, in celebration of the 75th anniversary of the founding of the People’s Republic of China and the 25th anniversary of the establishment of the MSAR, organized the event “Double Celebration of Love and Community Care” on Sunday (Nov 24) in the Ballroom of MGM COTAI, aiming to foster connections between people from different backgrounds and cultivate a harmonious and happy community.
The event featured a series of activities to promote an inclusive society, including wedding photos taken for 25 elderly couples with an average age of 75, scarves hand-knitted by volunteers for people in need, and free haircuts provided to senior citizens by youths and MGM Volunteer Team members. The MGM Golden Lion Volunteer Team, along with senior citizens, youths, and people with disabilities also presented music and dance performances during the event.
Kenneth Feng, President and Executive Director of MGM China Holdings Limited, said: “As a company deeply rooted in Macau, MGM implements its social responsibility by partnering with local social service organizations to support and care for people of all generations, from youths to senior citizens and people with disabilities. Over the past ten years, our ‘Love Moments’ initiative has helped many elderly couples realize their dreams of having their wedding photos taken.
The MGM Golden Lion Hairdressing Team, founded 10 years ago, has given more than 5,000 senior citizens free haircuts so far. In addition, we have recruited 80 students to join the new cohort of the Teenagers Hairdressing Team, aiming to increase cross generation bonding between young people and the elderly via the haircut service. Our team members also worked with students and volunteers to knit over 2,500 scarves, breaking records and spreading warmth to those in need. We will continue to work hand in hand with the Macao SAR Government and various sectors of society to build a happier Macau.”
Love Moments: Making Dreams Come True
This year sees the return of “Love Moments”, a cherished MGM tradition. The event is all the more meaningful as the participation of 25 couples with an average age of 75 is a beautiful echo of the 75th anniversary of the founding of the People’s Republic of China and the 25th anniversary of the establishment of the Macao Special Administrative Region.
MGM invited these couples from five social service organizations to have their first Western wedding photos taken at the romantic and picturesque Grande Praça of MGM MACAU and the Spectacle of MGM COTAI, making their lifelong dreams come true. At the beginning of the event, the couples, accompanied by a group of adorable children, entered the Ballroom in their wedding suits and dresses and were welcomed by the guests with applause and blessings, resembling a grand wedding ceremony.
MGM invited 25 elderly couples with an average of 75 to have their first Western wedding photos taken.
Spreading Warmth During the Winter
In June, MGM gathered over 500 team members, students and volunteers to knit more than 2,500 scarves by hand. This winter, the scarves will be given to people in need to provide warmth and care during the cold months. At the event, some of the scarves were presented to participants, including senior citizens and people with disabilities, accompanied by warm greetings from MGM team members.
During the event, around 300 scarves were presented to participants.
Meanwhile, the MGM Golden Lion Hairdressing Team led a new cohort of the Teenagers Hairdressing Team to give free haircuts to more than 100 senior citizens, promoting the spirit of respect and care for the elderly among the younger generation.
MGM Golden Lion Hairdressing Team led a new cohort of the Teenagers Hairdressing Team to give free haircuts to more than 100 senior citizens.
Promoting Intergenerational and Inclusive Harmony
MGM’s “Double Celebration of Love and Community Care” aims to promote intergenerational harmony. The MGM Golden Lion Volunteer Team, along with senior citizens, youths, and individuals with disabilities, performed a musical and dance show, a martial arts demonstration, and a group choir during the event. The performance fostered connections among them through the arts. To further convey care and create a warm atmosphere, MGM’s professional culinary team guided local students in preparing Chinese walnut cookies, which were served to guests and senior citizens during the event.
Distinguished guests included:
Hon Wai, the representative of the Secretary for Social Affairs and Culture of the Macao SAR Government and Director of the Social Welfare Bureau;
Liu Dun, Deputy Director of the Social Affairs Department of the Liaison Office of the Central People’s Government in the Macao SAR;
Iau Teng Pio, a Macau lawmaker;
O Man Ian, Director of the Centre of Experimentation for the Youth of the Education and Youth Development Bureau;
Ng Sio Lai, Director of the General Union of Neighborhood Association of Macao;
Lee Chong Cheng, Chairman of the Macao Federation of Trade Unions;
Un Sio Leng, President of the Macau Women’s General Association;
Iong Weng Ian, Chief Supervisor of the Macau Women’s General Association;
Chan Hong, Chairman of the Chinese Educators’ Association of Macau;
Ma Iao Iao, Vice Chairman of the Board of Directors of Tung Sin Tong;
Pun Chi Meng, Secretary General of Caritas Macau;
Maria de Fátima Salvador dos Santos Ferreira, President of the General Assembly of Fuhong Society of Macau;
Siu Yu Hong, Chief Executive Officer of Macau Special Olympics;
Kuan Sok Leng, Secretary General of the Young Men’s Christian Association;
Kenneth Feng, President and Executive Director of MGM China Holdings Limited;
Wendy Yu, Executive Vice President of Human Resources of MGM.
Over 400 participants, including senior citizens, youths, individuals with disabilities, MGM Golden Lion Volunteer Team members, and representatives from 17 local schools, joined the event.
Habanero, a premium slots and table games provider, has launched its latest vibrant release, Carnival Cove, inviting players to immerse themselves in a colourful fete where big prizes await.
The 5×3 slot bursts with lively fair attractions, with 243 ways to win. Players can unlock up to 30 free games when three scatters land, while the dazzling carousel feature takes centre stage, multiplying wins by 2x, 3x, or 5x for even greater rewards.
During the free games, the carousel can also trigger the wild feature, replacing all symbols of the same type for one spin, adding an extra layer of excitement to the gameplay. With high volatility, every spin brings the potential for big wins, with a maximum payout of up to 1,166x the total bet.
For players seeking instant access to the free games, the game offers a Buy Feature in certain jurisdictions. Meanwhile, the Super Bet option enhances the chances of triggering the carousel’s multipliers or wild feature during the free games, delivering an exciting experience for an increased stake.
Carnival Cove is the latest addition to Habanero’s extensive portfolio, joining recent titles such as Baba Yaga and Jump! 2.
Toni Karapetrov, Head of Corporate Communications at Habanero, said: “Carnival Cove brings a lively and energetic atmosphere to our portfolio, packed with exciting features that offer significant win potential. We remain committed to creating captivating content that delivers fun, rewarding experiences for players on every spin.”
EveryMatrix, BetBlocker, and the Responsible Gaming Foundation have joined forces to promote safer gambling in Malta. This partnership will enable BetBlocker to expand its services by introducing a Maltese version of its award-winning blocking software.
This project is launched as part of European Safer Gambling Week 2024 to provide both an additional tool to support Maltese players looking to manage their access to gambling and to raise the profile of the free, anonymous to use, service BetBlocker provides within one of the key international hubs for the igaming industry.
Duncan Garvie, Founder and Trustee for BetBlocker, said: “One of the biggest challenges for BetBlocker is ensuring that a technologically complex app is as simple as possible for users to set-up. Currently, BetBlocker can take a user from download to blocked in under 2 minutes. But that is only the case where the user finds the set-up instructions easy to engage with.”
“Where a user is able to access BetBlocker in the language that they are most confident in, the chances of them converting to an active block is far higher. We’re really grateful to EveryMatrix and the RGF for their partnership on this project. It significantly improves the options for Maltese players and will go a long way in terms of raising awareness of the support that BetBlocker offers amongst MGA licensees.”
“We hope that in the future that the MGA will advance their player protection standards with the inclusion of requirement for licensees to signpost blocking software to ensure players are aware of this option.”
Jake Cachia, Head of Compliance, EveryMatrix, added: “We’re delighted to be able to support BetBlocker and the RGF with this important initiative in Malta, particularly in time for Safer Gambling Week.
“EveryMatrix is proud of its commitment to safer gambling and player protection while producing market leading gaming solutions, and partnerships such as underline how crucial it is to keep making a difference.”
Kevin O’Neill, General Manager for the Responsible Gaming Foundation, shared on the project: “The Responsible Gaming Foundation is proud to collaborate with BetBlocker and Everymatrix on this initiative, furthering our mission to support safer gambling practices in Malta. Translating BetBlocker into Maltese is a significant step towards accessibility and inclusivity, ensuring that players can effectively manage their gambling habits in their native language.
“This project demonstrates the power of partnerships in enhancing player protection and underscores the importance of providing players with tools that promote responsible decision-making. As we launch this initiative during European Safer Gambling Week 2024, we remain committed to contributing to an environment where innovative solutions, such as BetBlocker, can meaningfully impact safeguarding our community.”
