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  • Their margin achieved this quarter is a record for the company
  • Grand Lisboa:  Mass growth 25.5%; 35% growth in VIP revenue.  They are remodeling some space on level 9 & 10 to create more VIP capacity.
    • ADR:  HK$2131/ Occupancy: 93%
  • Cotai:  They are working at full speed on the project design


  • Oceanus performance:  1H results were encouraging overall and on a table basis. Volume increased 12.9% sequentially in 1Q but then decreased QoQ in the second Q due to a suspension of gaming tables
  • Grand Lisboa is capacity constrained on Mass
  • Luck in 2Q?  Held at 2.86% in1Q and 2.92% in 2Q at Grand Lisboa.
  • Chips in circulation increased by $500MM YoY, mainly due to the commissioning of new junkets buying into new chips
    • Increased VIP tables from 354 to 372
  • Competitive landscape?
    • Seeing pressure on the mass since they have limited room product so they are struggling to maintain their share
    • Their non-gaming margins are getting squeezed due to increased F&B costs
  • Policy is dividing out 50% of their profit 
  • Have a limited physical capacity to add mass tables on the main gaming floor. They are taking 40 tables from 3rd party operators and 200 staff members into Grand Lisboa.  They already reduced the number of slots to make room for more mass tables. Will see that they can get more cash from their VIP tables. 
  • Third party agreements have thresholds that they need to meet and that will give them an opportunity to take back some tables. It's not a hard and fast rule though. Their relationships are deeper than that.


(note that all $ figures are in HK$ for the 6M ended June 30, unless otherwise noted) 

  • 2Q12 results: 
    • Gaming revenue: $19.3BN, -1% YoY
    • Adjusted EBITDA: $1.9BN, +5% YoY
  • Total Group revenue of $39.3BN (+3% YoY) gaming revenue of $39BN (+4% YoY),  and Adjusted EBITDA of $3.8BN (+9% YoY)
    • Mass table revenues: +15% YoY to $11.7BN 
    • VIP revenues: -0.5% to $26.5BN
    • Slot revenue: +3.2% YoY to 769.2BN
  • Mass market table share: 32.4% and VIP table share of 27%
  • Casino Grand Lisboa Adjusted property EBITDA and profit grew by 22.2% and 22.5%, respectively
  • "618 VIP gaming tables in operation with 29 VIP promoters, as compared with 609 VIP gaming
    tables and 32 VIP promoters as at 31 December 2011."
  • Mass tables: 1,157 vs. 1,166 at Dec 12
  • "SJM had 3,769 slot machines, operating in 14 of SJM’s casinos and in three slot halls, as at
    30 June 2012 as compared with 3,910 slot machines as at 31 December 2011."
  • Cash: $22BN
  • Declared interim dividend of $0.10/share for the 6M ended 6/30/12