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  • EBITDA margin increase was due to the increase in mass market mix of their business
  • In late September, they added most of the gaming tables they have obtained from Satellite casinos to floors 9 & 10 of Grand Lisboa
  • Cotai expansion: 70,468 Meters of land. See completion 3 years after starting construction, hopefully in 2013.


  • Tables that came out of Greek Mythology and went into Grand Lisboa didn't come online until the end of the quarter.  Their margins at GL decreased because the growth in VIP came from their largest junkets which get the highest commissions.  They also had to train staff from Greek Mythology before they were able to start producing revenue.  So you will see some net margin pressures next quarter as well but not as much as this quarter and there should be net revenue growth.
  • It's not easy to move tables from the their Satellite Casinos.  They are planning to add more tables at GL. There is a plan to renovate Jai Alai and that is one of the easier ways to move tables to their casinos.


  • Adjusted Group EBITDA of HK$1,891MM and total revenue of HK$19,052MM
    • Gaming revenue: HK$18,892MM or 26.1% of the market
    • VIP gaming revenue: HK$13,314MM
      • VIP RC: HL$409BN; Hold: 3.05%
    • Mass market revenue: HK$6,040
    • Slot revenue: HK$370MM
    • 601 VIP tables and 1,158 Mass tables
  • Grand Lisbao gaming revenue of HK$7,315MM and Adjusted EBITDA of HK$1,148MM
  • Other self-promoted Casinos revenue of HK$2,591MM and Adjusted EBITDA of HK$271MM
  • Satellite Casinos revenue of HK$8,986MM and Adjusted EBITDA $HK$371
  • Cash: HK$24,880MM and Debt: HK$3,695MM
  • Comparable GAAP EBITDA margin of 17.3%.  "If the Group’s revenue is further adjusted to include the net revenue of self-promoted casinos plus the net revenue contribution (after reimbursed expenses) of the Group’s Satellite Casinos, the Group’s Adjusted EBITDA margin would be 29.4%."
  • Capex: HK$233MM