• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here


    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.


  • FY 2012:  Mass market revenue grew 13% and slot revenue increased 3% and VIP revenue increased 1%
  • They are particularly encouraged by the QoQ growth in the 4th quarter which grew 11% sequentially on the back of strong VIP growth
  • Their Cotai site will be combined with the adjacent site (amusement park) 
  • Planning to create more space at Grand Lisboa on the main floor and the 3rd floor for premium mass. They are dedicating more of their tables to the premium mass segment.
  • They are constructing a bridge and renovating the Jai Alai building 


  • Grand Lisboa:  isn't EBITDA margin down QoQ despite adding more tables? Yes, the margin is down. VIP grew 15.8% QoQ but the mass was down 1%.  So some of it was mix - 80% VIP mix. Additional margin decline due to junkets performing well and getting higher commissions. They also had to absorb higher bonuses and accrued compensation in the 4Q.  They should have a little north of 14% EBITDA margins or 24-25% on a US GAAP basis going forward. 
  • They are going to get some additional revenues from Jai Alai to re-allocate to Grand Lisboa
  • Down about 2% QoQ on slots and mass.  They took some slots offline to make room for more table games. 
  • They are going to be negotiating a lease with Angela on the adjacent land.  They can only build non-gaming facilities on that land but will complement their gaming asset on that site. Looking to add 6,000 more rooms on that site in addition to the 1,700 that their site can support. Phase I should open in 1Q16. The rest of the towers will open as they reach certain occupancy levels.
  • Trends in Febraury, soft CNY and then the rebound afterwards:  Hard comparisions YoY because of the calendar shift. But if you combine the months of Jan and Feb their business is up 20%.
  • They don't think that there is really anything going on politically. 
  • Their 1Q is usually the weakest Q of the year [for VIP]
  • Jai Alai: In November, they wanted to lease the entire building.  Capex would be HK$600-700MM. For 2013 they are budgeting HK$400MM.  They are going put in better retail etc to complement Oceanus. They will have table space at Jai Alai once the renovations are complete but the tables won't come back from Grand Lisboa.
  • They think that their current dividend payout ratio is sustainable around 76% but they can't guide to that because the Board needs to approve it
  • Theme Park & rooms on Cotai:  They are still negotiating with Angela.  The capex on Angela's site will be roughly the same as what's on their adjacent site.


  • Adjusted Group EBITDA grew by HK$7,631MM and gaming revenue grew by 4.5% to HK$78.9BN
  • Market share of 26.7%
  • Grand Lisboa 2012 revenue:  HK$29.2BN, up 28% YoY and Adjusted Property EBITDA of HK$4.5BN
    • Mass market table gaming revenue increased by 11.5% and VIP gaming revenue increased by 34.4%, while VIP chips sales increased by 16.6%.
    • Grand Lisboa Hotel’s occupancy rate increased by 2.4% to 95% for the full year, and average room rate increased by 3.6% to HK$2,129.
    • Visitation to Grand Lisboa grew during the year, from an average of 34,733 visitors per day in the first quarter, to an average of 40,770 visitors per day in the fourth quarter 
    • During 2012 Casino Grand Lisboa expanded its VIP gaming operations from 134 tables at 1 January 2012 to 175 tables at 31 December 2012. Two areas of the property were converted for VIP gaming, on the 31st floor (since February) and on the 9th and 10th floors (since September). Mass market table gaming grew during the year due to increased numbers of visitors and greater spending at gaming tables, particularly by high limit mass market customers
    • If calculated under US GAAP, the Adjusted Property EBITDA margin of Casino Grand Lisboa would be approximately 25.8% for 2012
    • As at 31 December 2012, Casino Grand Lisboa operated a total of 175 VIP gaming tables, 240 mass market gaming tables and 731 slot machines.
  • Cash: HK$24BN
  • Besides growth of gaming revenue, other factors that contributed to higher Adjusted EBITDA in the year were improved operating results at Ponte 16 and Grand Lisboa Hotel. 
  • The Group’s Adjusted EBITDA margin for the year was 9.6%... If calculated under GAAP, Group’s Adjusted EBITDA margin would be 16.9% for 2012
  • VIP gaming operations accounted for 67.5% of the Group’s total gaming revenue in 2012, as compared with 69.9% for the previous year
  • SJM had 587 VIP gaming tables in operation with 36 VIP promoters, as compared with 609 VIP gaming tables and 32 VIP promoters at 31 December 2011.  At 31 December 2012, SJM operated VIP gaming in 14 of its casinos.
  • As VIP chips sales for the year decreased by 4.0%, the increase in VIP gaming revenue of 1.0% resulted from a higher hold rate for the year. The hold rate for SJM’s VIP operations increased in 2012 to 3.03% from 2.88% in 2011.
  • SJM had 3,532 slot machines in service at 31 December 2012 as compared with 3,910 slot machines at 31 December 2011. Slots were operated at 14 casinos and 2 slot halls.
  • At 31 December 2012, Casino Lisboa operated a total of 48 VIP gaming tables, 131 mass market gaming tables and 72 slot machines.
  • At 31 December 2012, Casino Oceanus at Jai Alai and Casino Jai Alai operated a total of 188 mass market gaming tables, one VIP gaming table and 648 slot machines.
  • Operating results for the Sofitel at Ponte 16, in which SJM’s interest is 51%, improved during 2012 and contributed $184 million in revenue to the Group, compared with a contribution of $162 million in 2011. The occupancy rate of the 408-room hotel averaged 80.8% for the full year 2012 as
    compared with 72.8% in 2011, and the average room rate increased by 0.7% to $1,210.
  • In 2013, SJM is continuing to expand gaming capacity at Casino Grand Lisboa by making more space available for tables on the ground floor for mass market gaming and on the first floor, adjacent to the current high-limit gaming area, for premium mass market gaming. Further space for expansion of premium mass market table games is under consideration involving relocation of food and beverage outlets. SJM is currently working with contractors to determine the actual added capacity, expenditure requirements and timetable. In the first quarter of 2013 additional VIP gaming
    tables were added on the third floor and on the 31st floor.
  • Casino Lisboa is currently upgrading its table capacity and in 2013 will devote more tables for premium mass market gaming in special high-limit gaming areas. In addition, Casino Lisboa has opened a new area for multi-station electronic games and will add 150 slot machines adjacent to the
    main gaming areas by the second quarter of 2013.