Wire ASIA & OCEANIA
Galaxy Bounces Back with Bumper 2021
Macau operator Galaxy Entertainment posted Net Revenue of $19.7bn, up 53 per cent year-on-year. Adjusted EBITDA was $3.5bn versus $1bn in 2020.
Macau operator Galaxy Entertainment posted Net Revenue of $19.7bn, up 53 per cent year-on- year. Adjusted EBITDA was $3.5bn versus $1bn in 2020, which included a one-off expense reversal benefit of $0.2bn in Q4 2021.
Net profit attributable to shareholders was $1.3bn versus $4bn in 2020. Galaxy Macau’s Adjusted EBITDA was $2.9bn versus $0.9bn in 2020. StarWorld Macau’s Adjusted EBITDA was $374m versus $275m in 2020. Broadway Macau’s Adjusted EBITDA was $84m versus $162m in 2020. GEG played lucky in its gaming operation during 2021, which increased its Adjusted EBITDA by $253m. In addition, the Group experienced a one-off expense reversal benefit of $0.2bn, normalised Adjusted EBITDA was $3.1bn versus $1.1bn in 2020.
Te Group’s total GGR on a management basis1 in 2021 was $17.3bn, up 51 per cent year-on- year. Mass GGR was $11.2bn, up 83 per cent year-on-year. VIP GGR was $5.5bn, up 11 per cent year-on-year. Electronic GGR was $642m, up 35 per cent year-on-year.
Chairman Dr. Lui Che Woo said: “Te Group’s Net Revenue, Adjusted EBITDA and net profit
attributable to shareholders (NPAS) all improved in 2021 relative to 2020. Our balance sheet also remained healthy and we are well positioned to navigate through the pandemic. Further, we announced a special dividend of HK$0.30 per share to be paid on or about 29 April 2022. Tis attests to our confidence in Macau, our financial strength and our future earnings potential.
“We were encouraged by the performance over the recent Chinese New Year holiday. Even though visitor arrivals were less than anticipated due to travel restrictions, gaming revenue was solid, driven by premium mass, hotel occupancy was higher and retails sales were strong. Tis is evidence of strong pent up demand for tourism and leisure in Macau.
“During this economically challenging period, GEG continued to invest in the advancement of Macau’s economy with our Cotai Phases 3 and 4 developments and renovating and upgrading our existing resort facilities where we intend to align the openings with the prevailing market conditions. We continue to pursue our project in Hengqin and beyond to potentially include opportunities within greater China including the rapidly developing Greater Bay Area.”
China Sands to surge past 2019 EBITDA levels
Brokerage firm Sanford C. Bernstein believes Macau operator, Sands China, will surpass its 2019 EBITDA of US$3.3bn next year with US$5bn by 2025.
Bernstein’s Vitaly Umansky, said: “Sands China is the largest gaming investor in Macau, having invested US$14.5bn over the last 20 years and holding over 30 per cent market share. With the significant historical investment limited capex commitment over the next few years, we expect Sands China’s Net debt/EBITDA to drop back to 2019 levels by 2024 and restart dividends.
“Te long-term fundamentals in Macau and Sands’ positioning are positive, our thesis on secular
growth in mass is intact and Sands is well placed to succeed in the premium mass and mass driven market.”
In Singapore, it is tipping Marina Bay Sands to recover to 2019 levels by 2024 with EBITDA of US$1.74bn by 2024 and US$1.9bn by 2025. “Marina Bay Sands was the single most profitable casino asset globally in 2019 and generated the highest EBITDA both in dollars and margin, and can revert to those levels over the next two years as Singapore travel resumes,” he said.
“We expect MBS to maintain its lucrative positioning in the future, especially long-term on the back of its large-scale renovation and expansion.”
Australia
Australian casino giant Crown Resorts has said yes to an improved takeover offer from US private equity firm Blackstone, which upped its offer to A$8.9bn ($6.3bn) a bid that’s 10 per cent higher than its previous offer. Crown Resorts confirms it has entered into a ‘scheme implementation deed’ with a company on behalf of funds managed and advised by Blackstone Inc. and its affiliates, under which Blackstone will acquire all of the shares in Crown at a price of A$13.10 cash per share.
Crown’s Chairman, Ziggy Switowski said: “We believe the Blackstone transaction represents an attractive outcome for shareholders. Te all-cash offer provides shareholders with certainty of value.”
VIETNAM – Vietnam-based Platinum Entertainment has agreed a partnership with Spintec across four Asian markets offering to supply, install and provide venue support for Spintec’s Electronic Table Games (ETGs).
As part of the collaboration, Platinum Entertainment will cooperate with Spintec in Vietnam, Cambodia, Laos and the Philippines.
Platinum Entertainment CEO, Paul Simmons, said his company is delighted to partner with the Slovenia-based business, noting that Spintec’s highly experienced R&D team ensure that all products are customised to local markets, current standards, and legislation.
Spintec’s products are present on six continents in over 400 casinos worldwide, including over 60 per cent penetration in the Macau market. The company offers two core product lines: Aura – designed for amphitheatre and stadium setups, and Karma for more compact solutions.
AUSTRALIA – Australian casino operator Crown Resorts has ‘turned a corner’ with first half revenues of $778.6m, up 34 per cent on last year’s figures. The operator, who recently agreed to a takeover deal by Blackstone, saw its EBITDA generate a loss of $47.5m, down from a profit of $4.4m.
Crown Melbourne generated revenue of $265m compared to $97.1m in the pcp, with main floor gaming revenue of $187.6m (up $133.9m) and non-gaming revenue of $77.4m (up $37.7m). Given continued international border restrictions, there was no international VIP programme play revenue in the period.
Overall hotel occupancy across Crown Melbourne’s three hotels was approximately 23 per cent, with Crown Towers hotel occupancy 28 per cent, Crown Metropol hotel occupancy 21 per cent and Crown Promenade hotel occupancy 21 per cent. At Crown Perth, revenue came in at $402.9m, down 1.5 per cent on the pcp, with main floor gaming revenue of $236.5m,down 14.1 per cent, and non-gaming revenue of $166.4m, up 24.7 per cent.
Crown’s Managing Director and Chief Executive Officer, Steve McCann, said: “Crown’s first half performance reflects the continued challenging operating conditions as a result of COVID19 as well as the impact of ongoing regulatory matters. While we do not underestimate current headwinds facing Crown, there is growing confidence we have turned the corner. All three of our domestic resorts are back open, with a vaccination strategy to combat COVID- 19 providing a pathway forward for our staff, the business and the wider community.”
WIRE / PULSE / INSIGHT / REPORTS P25
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