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A slight beat from our estimate and we were above the Street


  • In March, first junket licenses were issued. They believe that it will help them in the intermediate term. They are confident that there will be more licenses issued over the next 12-18 months. First IMA's started operating in May. 
  • Raised funds that will enable them to pursue new projects; their location remains disadvantaged

  • Issued largest bond offering in S'pore in March
  • EBITDA margin: 48%
  • Gained market share in mass - due to better promotional spending
  • 1Q VIP hold rate: 3.4%
  • Remain committed to growing the company with new projects


  • No comment on location of their new project other that they will likely announce something in the next 12-18 months.  Not interested in Europe.  JV/direct investment are both possible.  If they went into Japan, they would go in with a partner. 

  • Balance of 2012 capex for West Zone: S$500MM; Not all the capex in the quarter is related to West Zone - there is a timing differential in paying contractors for past work already completed.  They will likely not pay all the 500 in 2012 though. 
  • Total S'pore capex so far (ex. WC, land): S$5.5BN
  • Cannot allocate tables to the IMAs   
  • They are only at the beginning of hiring IMAs. There will be very minimal revenue impact from the IMAs over the next few months. The very tight regulatory process allows them to go through with the government of what is allowed and what is not allowed.  It's a very structured learning.  So if and when the IRA allows other junkets to come in, they will know how to best utilize them- especially if the rules get modified.

  • RC volume share: 49%; mass drop: 47%
  • Rolling win mix on a net revenue basis was 36%
  • Mass hold %: 22.8% 
  • Net revenue share: not comparable since they deduct more costs 
  • No change on the VIP commissions; they continue to be very cautious on giving credit.  Do not want to overextend themselves.  They give a higher rebate to customers to get an early payment.
  • RC volume growth QoQ was +29%
  • Mass floor revenue QoQ: +8%; slot growth was higher relative to tables
  • 2,440 slots in end of 1Q; 702 ETGs
  • No changes on government regulations on advertising.  What the government did is simply clarify what was ok or now.

  • Still a few pending IMAs that have not been rejected
  • Hotel occupancies are not constant since they have to reserve rooms for the VIP; not concerned about the decline in occu and margins QoQ. Added 200 more rooms in 1Q. Hotel margins: 60%
  • Margins on USS and everything else is where there is upside
  • Rentals should be finished (West Zone) in 4Q 2012; costs will ramp up in the next few quarters but margins for 2013 will be better
  • Next few quarters will be focused on USS; once break-even point passed (6,000-7000 visitors), there is $0.80 per $ flowthrough to bottom line
  • 1Q Table count: 562 tables (MASS/VIP%: 1/3, 2/3); in terms of capacity, "they are almost there."
  • 1Q: 8,400 average visitors in USS; attendance went up 14% YoY
  • 1Q pre-opening: $2MM 
  • The significance of the IMA contribution depends on which ones get approved.  At most, IMA can contribute 30-40%. 
  • VIP hold rate may stabilize around 3.0-3.1% but that's just a guess
  • IMA don't collect debt at this point but they guarantee it

  • Continue to be cautious on extension of credit for rest of year


  • Group revenue of S$787MM and S$EBITDA $376.4MM 
  • Non-gaming revenue up 16% YoY
  • USS grew its daily average visitations by 14% to 8,400 visitors at an average spending of about S$88. Hotel business improved as occupancy rate increased from 79% to 86% with an average room rate of S$338. However, overall revenue for first quarter of 2012 was affected by lower win percentage and business volume in the premium player business when compared to first quarter of 2011. 
  • On quarter to quarter basis, overall casino gross revenue grew by 9% as a result of higher business volume in all gaming business segments.
  • Consequently, the Group’s net profit for the first quarter of 2012 was S$211.5 million as affected by the revenue mentioned above and higher depreciation with the opening of new attractions in USS, the Maritime Experiential Museum, Equarius Hotel and Beach Villas compared to first quarter of 2011. This was mitigated by lower finance costs in first quarter of 2012 as a result of lower effective interest rates and lower loan principals.
  • On 12 March 2012, the Company issued S$1,800 million 5.125% perpetual capital securities at an issue price of 100 per cent. The perpetual capital securities were issued for the Company’s general corporate purposes as well as to finance capital expenditure and expansion of its business.
  • The Group spent a total of S$262.4 million for construction work-in-progress and other property, plant and equipment during the financial period.