GKL sees almost 500% jump in net income in 1Q24

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May 9, 2024

South Korean foreigner-only gaming operator Grand Korea Leisure Co Ltd (GKL) experienced an almost 500 percent quarterly rise in net income for the first quarter of this year as the number of Japan and China VIP punters increased.

In the first three months of 2024, GKL registered KRW10.2 billion ($7.4 million), an almost ten-fold increase from the KRW1.7 billion ($1.2 million) registered in the previous quarter. This still represented a 53 percent year-on-year drop from the same quarter last year.

GKL is a foreigner-only casino operator in South Korea, which is a subsidiary of the Korea Tourism Organization, itself affiliated with South Korea’s Ministry of Culture, Sports, and Tourism.

7 Luck Casino, Busan, Grand Korea Leisure

In the first three months of 2024, GKL’s total sales amounted to nearly KRW97.9 billion ($71.4 million), an 8 percent increase from the previous three months, but a 10.3 percent year-on-year drop.

Group-wide sales stood at KRW97.94 billion ($71.4 million) in the three months to March 31st, a decrease of 10.3 percent year-on-year. Such sales were up only 8.0 percent sequentially, according to the Thursday filing.

Meanwhile casino net sales in the first quarter KRW93.7 billion ($68.3 million), down by 12.9 percent from a year ago, while casino drop in the period – the amount paid by customers to purchase gaming chips – has increased 21.5 percent year-on-year to KRW916 billion ($668.1 million).

Most visitors to GKL’s properties were Chinese, with 101,000 visits from the country reported or 47.6 percent of the 212,302 aggregate for the quarter, while 63,000 visitors hailed from Japan, plus 48,000 visitors from other locations.

The group also indicated that its first-quarter “marketing activities cost” increased 26.6 percent year-on-year, to KRW15.1 billion ($11 million), something it said helped to increase the tally of VIP customers from overseas countries, including Japan and China.

About 84.5 percent of GKL’s property visitors were mass market players, with the remaining being VIP players.

Everi Holdings revenue down by 5.6% to $189.3M in 1Q24

By

Viviana Chan

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May 9, 2024

Everi Holdings, a provider of land-based and digital casino products as well as player loyalty solutions, saw a first-quarter net income of $4.6 million. This occurred amidst a 5.6 percent year-on-year decline in revenue, which amounted to $189.3 million, as per a press release issued on Wednesday.

When evaluated sequentially, the company experienced a notable 142.1 percent increase in net income, despite a slight 1.4 percent quarter-on-quarter decrease in revenue.

The company highlights that its games revenues totaled $97.1 million, marking a decrease from the previous year’s figures. However, these revenues remained essentially unchanged on a quarterly sequential basis, reflecting the ongoing transition to its new family of cabinets and content.

“Approximately half of the decline in the installed base during the quarter is attributable to the Company’s proactive decisions not to replace cabinets in lower-performing locations,” it explained in a press release.

Randy Taylor, Chief Executive Officer of Everi, said, “We are making progress on the steps necessary to complete our proposed merger with IGT’s Global Gaming and PlayDigital businesses later this year or in early 2025.”

“We are excited about the significant growth opportunities we believe this combination will unlock. This transaction will bring together a comprehensive and complementary product set focused on our customers and their diverse needs, which we believe will deliver substantial long-term value to our shareholders,” he added.

Everi’s CEO acknowledged that “During the first quarter, our games segment continued to make progress in our transition to our newest family of cabinets and new and innovative content to support these cabinets. While this transition has been slower than anticipated, we are gaining momentum with these efforts and expect our progress will continue to accelerate throughout the back half of the year.”

SJM’s net gaming revenue soars 74.5% to $827M in 1Q24

By

Viviana Chan

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May 9, 2024

SJM Holdings recorded a 74.5 percent year-on-year increase in net gaming revenue in the first quarter of 2024, reaching HK$6.46 billion ($827 million).

During the same period, the group’s Adjusted EBITDA went from HK$31 million ($4 million) in 1Q23 to HK$864 million ($110.5 million) in 1Q24.

In the financial results highlights, SJM noted that its adjusted EBITDA Margin in 1Q24 improved from 0.8 percent in 1Q23 to 12.5 percent in the previous quarter.

Loss attributable to owners of the company was HK$74 million ($9.5 million) in 1Q24, compared with a loss of HK$869 million ($111.2 million) in 1Q23.

Among the group’s properties, although the group’s new flagship located in Cotai Grand Lisboa Palace continues to grow amid the overall recovery of the Macau gaming industry, Grand Lisboa – located on the Macau peninsula – maintains its leading position in contributing to the company’s revenue.

Grand Lisboa Palace, Macau, SJM — _{Grand Lisboa Palace, Cotai}

Grand Lisboa Hotel, Macau, SJM Resorts — _{Grand Lisboa Palace, Cotai}

According to the 1Q24 results released on Thursday after the trading time, Grand Lisboa Palace’s gross revenue in 1Q24 was HK$1.42 billion ($181.4 million), including gross gaming revenue of HK$1.1 billion ($142.1 million) and non-gaming revenue of HK$307 million ($39.3 million), compared with gross gaming revenue of HK$310 million ($39.7 million) and non-gaming revenue of HK$164 million ($21 million) in 1Q23.

Grand Lisboa Palace’s Adjusted Property EBITDA was HK$88 million ($11.3 million), compared with negative HK$230 million ($29.4 million) in 1Q23.

Grand Lisboa’s gross gaming revenue doubled to HK$1.88 billion ($240 million) in 1Q24, while non-gaming revenue also recorded an increase of 26.6 percent to HK$81 million ($10.4 million).

Satellite casinos

In the same period, satellite casinos under SJM recorded a 54.7 percent increase in casino revenue to a total of HK$2.6 billion ($338.2 million).

As of March 31, 2024, SJM has nine satellite casinos. Their adjusted Property EBITDA despite improved by 50.5 percent from 1Q23, but remained negative at HK$52 million ($6.7 million) in 1Q24.

Creditors move to dismiss Imperial Pacific’s bankruptcy petition

By

Nelson Moura

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May 9, 2024

Creditors of Imperial Pacific International (CNMI) LLC have notified the US District Court for the Northern Mariana Islands of their intention to file a motion seeking dismissal of the casino investor’s Chapter 11 bankruptcy petition, alleging abuse of the bankruptcy process.

According to the Saipan Tribune, Joshua Gray, one of the creditors, filed an opposition to several motions made by IPI relating to its bankruptcy petition, stating that IPI is using Chapter 11 to delay license revocation, avoid contempt proceedings, and hinder property liquidation.

Gray, along with other creditors, plans to file a motion to dismiss IPI’s bankruptcy petition, citing the company’s lack of an operating business suitable for restructuring. Other creditors have joined Gray’s opposition, alleging that IPI is not operating in good faith.

At the same time, Gray criticized IPI’s request for urgent approval of various motions without providing sufficient financial details, while arguing that there is no genuine emergency warranting immediate action.

IPI officially filed for Chapter 11 bankruptcy on April 19th, owing creditors over $160 million. However, Gray and other creditors demand answers regarding IPI’s financial management before any motions are considered.

The top three creditors with the highest judgments against IPI are CNMI Treasury, MCC International Saipan, and the Commonwealth Casino Commission. IPI’s bankruptcy filing lists significant debts owed to these entities.

Japanese and Chinese punters drive up Paradise’s revenue in 1Q24

By

Nelson Moura

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May 9, 2024

South Korean casino operator, Paradise Co. Ltd, reported a considerable 228 percent quarterly rise in operating profits in the first quarter of 2024, mainly due to the steady increase in play by Japanese and mass market players.

According to its latest financial report, Paradise registered KRW48.4 billion ($35.2 million) in operating profits, a figure that represents a 228 percent increase from the KRW19 billion ($13.8 million) reported in the previous quarter.

At the same time, it evidenced a 154 percent rise from the same quarter of the previous year.

The foreigner-only casino operator in South Korea also saw its net profit attributable to shareholders leave the red in the first three months of the year, with some KRW36.9 billion ($26.8 million) on the books.

Paradise Co. specializes in operating foreigner-only casinos, including Walker-Hill, Jeju, Incheon Paradise City, and Busan Casino.

Paradise Walkerhill, South Korea, Paradise Co. — _{Walker Hill Casino}

Paradise City, South Korea — _{Walker Hill Casino}

The group’s total sales witnessed a slight 9.5 percent quarter-to-quarter rise, reaching KRW264.7 billion ($192.9 million). Revenue from casino sales amounted to approximately KRW102.2 billion ($74.4 million), a 9 percent sequential increase.

The operator noted that it had the highest ever quarterly soft drop – the amount of cash exchanged for chips by customers at the table – almost KRW1.7 trillion ($1.2 billion), of which KRW717 billion ($522.6 million) was reported by Japanese punters and KRW301 billion ($219.4 million) by Chinese gamblers.

Paradise Co disclosed a full-year EBITDA of KRW68.1 billion ($49.6 million), marking a 96.3 percent rise from the preceding quarter.

Light & Wonder’s 2025 $1.4B EBITDA target challenging: Deutsche Bank

By

Viviana Chan

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May 9, 2024

Deutsche Bank notes that Light & Wonder‘s 2025 $1.4 billion adjusted EBITDA target will be a challenging task, as their forecast indicates the figure is ‘well below’ the goals articulated by management.

In an investment memo issued right after the company announced the first-quarter results, Deutsche Bank indicates that ‘from a big picture perspective, we see Light & Wonder’s shares as fully valued.’

‘We view the current multiple as somewhat expensive, in light of the sum of the parts and what we believe is likely to be decelerating growth,’ note the analysts.

Further, in 1Q24, Light & Wonder grew adjusted EBITDA by 13 percent year-over-year. ‘To achieve the $1.4 billion target, growth would have to average 12 percent per quarter over the next 7 quarters, a modest deceleration from current levels, despite what is likely to be a situation involving more scrutiny on domestic operator spend levels and slowing slot GGR trends and participation yields,’ they opine.

Light & Wonder sets new records with first-quarter results

Analysts note that the casino equipment and online games provider has done a nice job ramping up its international business, ‘as evidenced in the 1Q24, (they) should be taking share of a smaller pie domestically given new releases, and has several adjacencies into which they will begin selling gaming products, all of which argue the potential to achieve the target remains real.’

Asia sales bright

Based on analysis from Carlo Santarelli, Steven Pizzella, and Alfonso Straffon, Light & Wonder’s Asia’s market sale was a highlight.

Light & Wonder’s international unit sales grew 45 percent year-over-year in 1Q24, and the 5,259 units sold outpaced its 4,345 unit sale estimate quite healthily. Deutsche Bank indicates that the firm continues to make strides in Asia (with Macau-helped by regulatory changes, the Philippines) and Australia.

Pricing was up a healthy 6 percent year-over-year. ‘We believe the path to $1.4 billion is heavily predicated on unit sales remaining strong, specifically in International markets,’ note the analysts.

Light & Wonder’s strong first-quarter results mark its 12th consecutive period of yearly revenue growth, as gaming revenue topped $476 million. The company reports total revenue of $756 million and net income of $82 million (up 203.7 percent).

Gaming machine sales increased by 30 percent, to $205 million, while gaming systems operations were up 9 percent, to $60 million, and table products rose just 2 percent, to $47 million.

Daily Asia Gaming eBrief: Wynn targeting UAE, possible Thailand expansion

By

AGBrief Editorial

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May 9, 2024

Good Morning. Wynn Resorts is not one to sit on its laurels. The company is already expecting its UAE property to be completed by 2027, investing some $900 million into the project, even as it explores opportunities in Thailand – depending on the direction given by the government. The group also notes that in regards to Macau, its Capex could reach up to $500 million, as it satisfies its concession necessities. Meanwhile, Light & Wonder continues to break records, seeing strong rises across all segments, driven by APAC growth.

What you need to know

Wynn Al Marjan project in the UAE should absorb almost $900 million in investment: Wynn Resorts’ Chief Executive Officer.
Wynn Macau‘s concession Capex commitments could range between $350 million and $500 million between 2024 and end-2025.
Light & Wonder continues to break its own records, with first-quarter gaming revenue topping $476 million.

On the radar

DigiPlus’ net income grows 358% in 1Q24 to $35M.
Delta Corp casino revenue up 7.2% in FY ended March 31st.
Kangwon Land reports 1Q24 net income growth of 26% q-o-q.
Japan’s top law firms assist Osaka IR’s $3.4B loan from bank consortium.

AGB Intelligence

UAE/THAILAND

Wynn eyes Thailand, investing $900M in UAE

Wynn Resorts is doubling down on its investment in a new IR in the UAE, with Wynn Al Marjan Island expected to get a $900 million investment from the company, of the total $4 billion needed for the project. The group’s CEO notes that construction is going smoothly, with expectations to open the property by 2027. Meanwhile, sights are set on Thailand, with the group “actively considering” development opportunities in the region, depending on the information it gets from the government.

Corporate Spotlight

CDNetworks rapidly expanded in 2023, offering scrubbing service with over 15 Tbps capacity

CDNetworks, the APAC-leading network to deliver edge as a service, announced it rapidly expanded its global network of scrubbing centers in 2023, offering services with a capacity exceeding 15 Tbps, helping organizations boost availability, enhance resiliency, and secure the digital experience.

A complete guide to the 1xBet affiliate program

1xBet, a leading global betting company, introduced its affiliate program in 2016, quickly becoming renowned within the industry and earning recognition at the SBC Awards.

Industry Updates

Games Global and AreaVegas Games unleash Area Link Dragon.
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MEMBERSHIP | INTELLIGENCE | ASEAN | CAREERS

CDNetworks rapidly expanded in 2023, offering scrubbing service with over 15 Tbps capacity

By

AGBrief Editorial

-

May 9, 2024

CDNetworks, the APAC-leading network to deliver edge as a service, today announced it rapidly expanded its global network of scrubbing centers in 2023 to help organizations boost availability, enhance resiliency, and secure the digital experience.

Offering sub-second scrubbing services, with a capacity exceeding 15 Tbps, this rapid expansion is ideally suited to help organizations cope with the increasingly severe DDoS attacks and more complex compliance concerns.

According to CDNetworks’ latest State of Web Application and API Protection Report, the frequency of DDoS attacks is significantly increasing, with TB-level attacks becoming more common. The report also highlights a shift in the variety of attack methods being employed, indicating that organizations need to adopt unprecedented measures and pay increasing attention to DDoS protection.

Additionally, the growing emphasis on compliance with global regulatory standards is shaping the cybersecurity strategies of companies worldwide. These regulatory mandates necessitate the adoption of localized scrubbing centers, making them an essential component of a robust cybersecurity posture. In this context, the localization of extensive scrubbing center network becomes even more important when it comes to minimizing your risk of a DDoS attack.

“As DDoS attack methods undergo profound changes, the role of local scrubbing centers will become more prominent. Local scrubbing centers will become a critical safeguard for an increasing number of low-latency services while delivering a safe and secure experience to end-users. At the same time, local scrubbing centers will help organizations deal with malicious traffic without allowing data to leave its country of origin. This two-fold approach not only enhances the protection capabilities of an organization’s services, but also satisfies the requirements of compliance regulations,” said Doyle Deng, Head of Global Marketing and Product at CDNetworks.

Doyle further explained, “These factors are the motivations for accelerating the deployment of our scrubbing center network in 2023. This is especially true when it comes to emerging markets, such as Singapore, Thailand, Vietnam, Indonesia, and the Philippines. This expansion further buttressed our global scrubbing resources, meeting the evolving needs of customer businesses.”

“Currently, we continue to expand our local scrubbing centers in South and Southeast Asia, Middle East, South America, and other regions. This ongoing expansion will reinforce our sub-second-level scrubbing services, assisting with the delivery of unparalleled world-class security without impacting latencies and end-user experiences.”

Scrubbing Centers Built in 2023

Surabaya, Indonesia
Cebu City, Philippines
Manila, Philippines
Singapore (*2 Centers)
Bangkok, Thailand (*3 Centers)
Ho Chi Minh City, Vietnam (*2 Centers)
Paris, France
Montreal, Canada

With the official opening of the scrubbing center in Montreal, Canada, at the end of last year, CDNetworks now has more than 20 scrubbing centers globally. These strategic expansions will enhance CDNetworks’ ability to assist businesses worldwide to mitigate diverse DDoS attacks quickly and effectively.

Since 2021, CDNetworks has significantly increased its investment in cloud security, having launched a number of cloud security products including its WAAP solution. This commitment to advancing cloud security technology has enabled CDNetworks to stand at the forefront of defending against sophisticated cyberthreats. Over the years, CDNetworks has successfully helped organizations in Banking, financial services, and insurance (BFSI), igaming, software information services, and other industries to withstand repeated large-scale DDoS attacks multiple times, continuously earning regular praise and recognition in the industry.

Noteworthy DDoS Mitigation Successes by CDNetworks:

In the BFSI sector, we showcased our exceptional defensive capabilities by successfully neutralizing a 1.025 Tbps DDoS attack in January 2024, ensuring uninterrupted business continuity for our client.
Within the gaming industry, our expertise in handling frequent volumetric DDoS attacks was proven, as we assisted several companies to overcome challenges. These achievements included repelling a 1.05 Tbps attack in October 2023, a 1.72 Tbps attack in January 2023, and a 2.09 Tbps attack in January 2022.
In the software and information services sectors, we safeguarded a well-known multinational corporation from a massive 34.7 million RPS DDoS attack in April 2022, underlining our capability to protect global organizations from sophisticated cyberthreats.

For the latest information about CDNetworks, please visit https://bit.ly/44vsFml.

About CDNetworks

As the APAC-leading network with over 2,800 global Points of Presence and more than 20 years of technology experience, CDNetworks embraces the new era of Edge and takes it to the next level by using the Edge as a service to deliver the fastest and most secure digital experiences to end users. Our diverse products and services include web performance, media delivery, cloud security, zero trust security, and colocation services – all of which are uniquely designed to spur business innovation. To learn more, visit cdnetworks.com and follow us on LinkedIn.

Light & Wonder sets new records with first-quarter results

By

Kelsey Wilhelm

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May 9, 2024

Light & Wonder has delivered yet another strong quarter, marking its 12^th consecutive period of yearly revenue growth, as gaming revenue topped $476 million – a 14 percent yearly increase.

The group announced the results late on Wednesday, indicating total revenue of $756 million and net income of $82 million (up 203.7 percent).

Gaming machine sales increased by 30 percent, to $205 million, while gaming systems operations were up 9 percent, to $60 million and table products rose just 2 percent, to $47 million.

The group notes that machine sales saw strong growth in Asia and ‘continued momentum in Australia’.

The group also saw its AEBITDA rise by 13 percent yearly due to the revenue growth.

International unit shipments rose by some 45 percent yearly, to over 5,200, ‘drive by continued strength in Australia, replacement sales in Macau, as well as new and expansion units in the Philippines and South Korea’.

The group notes that North American replacement units rose by 14 percent yearly, to roughly 4,300, ‘primarily driven by shipments to adjacent markets’.

The group’s SciPlay arm also saw revenue rise by some 11 percent, driven by four primary titles, hitting $206 million and achieving a 15 percent yearly rise in AEBITDA, to $62 million, due to ‘continued player engagement and higher monetization in the social casino business’.

In iGaming, the 14 percent yearly increase in revenue, a record at $74 million, was ‘primarily driven by continued momentum in the US and international markets, with US GGR up 23 percent ‘driven by market growth and increased volume of land-based content’, while Canada GGR in the segment was up 29 percent – growing for 10 consecutive quarters. AEBITDA was up 9 percent, to $25 million.

SOFTSWISS game aggregator hits €13 billion in monthly total bets: 1Q24

By

AGBrief Editorial

-

May 8, 2024

SOFTSWISS game aggregator hits €13 billion in monthly total bets: 1Q24

In Q1 2024, the SOFTSWISS Game Aggregator, an industry-leading renowned game content hub, reached a significant milestone: over 13,000,000,000 euro bets were handled each month.

Over six months, this figure increased by 30%, confirming the tool’s widespread use and growing interest.

Currently, 1,052 brands worldwide are utilizing the SOFTSWISS Game Aggregator’s services, an increase of 112 brands from the last quarter.

The Game Aggregator team is expanding its client portfolio, with a strong focus on the Latin American market. The company has increased its regional presence to better meet local business needs.

“We act as consultants for our clients on attracting and retaining players. We leverage our expertise to help clients promote iGaming content to different audience segments. Since the beginning of this year, we have also financially participated in all promotional campaigns initiated by our clients or providers. Increasing the budget for well-thought-out campaigns enhances their reach and effectiveness for casinos, and we are pleased to contribute to our stakeholders’ success,” noted Gregory Penkov, Head of Sales at SOFTSWISS Game Aggregator.

South Korean foreigner-only gaming operator Grand Korea Leisure Co Ltd (GKL) experienced an almost 500 percent quarterly rise in net income for the first quarter of this year as the number of Japan and China VIP punters increased.

Table of Contents

Everi Holdings, a provider of land-based and digital casino products as well as player loyalty solutions, saw a first-quarter net income of $4.6 million. This occurred amidst a 5.6 percent year-on-year decline in revenue, which amounted to $189.3 million, as per a press release issued on Wednesday.

Table of Contents

SJM Holdings recorded a 74.5 percent year-on-year increase in net gaming revenue in the first quarter of 2024, reaching HK$6.46 billion ($827 million).

Satellite casinos

Table of Contents

Creditors of Imperial Pacific International (CNMI) LLC have notified the US District Court for the Northern Mariana Islands of their intention to file a motion seeking dismissal of the casino investor’s Chapter 11 bankruptcy petition, alleging abuse of the bankruptcy process.

Table of Contents

South Korean casino operator, Paradise Co. Ltd, reported a considerable 228 percent quarterly rise in operating profits in the first quarter of 2024, mainly due to the steady increase in play by Japanese and mass market players.

Table of Contents

Deutsche Bank notes that Light & Wonder‘s 2025 $1.4 billion adjusted EBITDA target will be a challenging task, as their forecast indicates the figure is ‘well below’ the goals articulated by management.

Asia sales bright

Table of Contents

What you need to know

On the radar

UAE/THAILAND

Corporate Spotlight

Industry Updates

Table of Contents

CDNetworks, the APAC-leading network to deliver edge as a service, today announced it rapidly expanded its global network of scrubbing centers in 2023 to help organizations boost availability, enhance resiliency, and secure the digital experience.

Scrubbing Centers Built in 2023

Noteworthy DDoS Mitigation Successes by CDNetworks:

About CDNetworks

Table of Contents

Light & Wonder has delivered yet another strong quarter, marking its 12th consecutive period of yearly revenue growth, as gaming revenue topped $476 million – a 14 percent yearly increase.

Table of Contents

In Q1 2024, the SOFTSWISS Game Aggregator, an industry-leading renowned game content hub, reached a significant milestone: over 13,000,000,000 euro bets were handled each month.

Table of Contents

ENQUIRIES & SUBSCRIPTIONS

CONTACTS

Light & Wonder has delivered yet another strong quarter, marking its 12^th consecutive period of yearly revenue growth, as gaming revenue topped $476 million – a 14 percent yearly increase.