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  • 40 of their Mass tables were reclassified as VIP tables during the quarter due to the high payout.  If not for the reclassification, then both Mass and VIP win would have grown about 10% YoY
  • Grand Lisboa:  also has 25 premium mass tables reclassified as VIP.  Without the reclassification, VIP would have grown 23.8% and Mass would have grown ~11%.
  • Working at full speed on the design of their Cotai project.  Expect the gazetting of the project to come soon.  Also expect that later this year they will be able to make an announcement for most of the details of their project.
  • Working on the redesign of the mezzanine floor to accommodate more mass tables at Grand Lisboa


  • Hold adjusted EBITDA:  The 3.3% hold rate was due to the reclassification of tables by the government. If they consider the tables as normal VIP tables, their hold would have been 3.08%. 
  • Reclassification:  When they report their operating tables to the DICJ, if the max payout is equal to or more than HK$300,000, then they treat it as a VIP table vs. a mass tabls.  Can't really comment on why this has or hasn't impacted their competitors. 
    • This likely explains why certain properties have much higher reported VIP hold rates,although we don't know for sure. 
  • Thinks that Galaxy's acquisition of Grand Waldo was quite logical.  They aren't considering a similar move
  • Operating margin on both the Old Lisboa and Oceanus improved their margins due to a greater mix of mass margins
  • # of tables at Grand Lisbao: 203 VIP tables (189 by their classification) and 219 Mass tables (28 premium mass considered VIP)
  • 1714 total non-vip revenues; 6489 total VIP revenues, 300xx of VIP revenue is being reclassified as VIP. The reclassification only happened 50% through the Q, so the impact will be larger going forward but they will break it out. 
  • Why not convert more of their satellite to owned casinos?  The casinos aren't structurally up to par. Think it's better to focus their energies on making their existing casino structures better.
  • The reclassification happened last year but it only impacted 3 tables, but mass has gotten more material.
  • Mgmt accounting hold was 3.12% last Q.
  • They have had a recent impact because they have recently increased their premium mass table base.
  • VIP margin is only 7.7% and premium mass margins are over 40%. 
  • VIP hold rate from other self-promoted casino:  (Just old Lisboa since they don't have VIP at Oceanus) Don't have it at their finger-tips but it did go up


  • Group Adjusted EBITDA: HK$2,129 million with margins of 9.7% (US GAAP: 17.2%)
  • 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 28.8%.
  • Group Gaming revenue: HK$21,734 million
    • VIP gaming revenue: HK$15,137 million, an increase of 13.4%
      • Total VIP chips sales: HK$459.2 billion and the VIP gaming hold percentage 3.30% 
    • Mass market gaming revenue: HK$6,220 million an increase of 4.7%
    • Slot machine (and Tombola) revenue: HK$377 million, a decrease of 4.2% 
  • The Group’s total revenue of HK$21,892 million included hotel, catering and related services revenue of HK$158 million 
  • During Q1 2013 the Group operated an average of 653 VIP gaming tables (Q1 2012: 603),
    1,118 mass market gaming tables (Q1 2012: 1,165) and 3,531 slot machines (Q1 2012: 3,877)
    (average of three month-end counts).
  • Casino Grand Lisboa gaming revenue: HK$8,327 million and Adjusted EBITDA: HK$1,217 million
    • Hotel occupancy: 93.9% and ADR: HK$2,236 
  • Other Self Promoted casinos gaming revenue of HK$3,340 million and Adjusted EBITDA of HK$386MM
  • Satellite Casino revenue of HK$10,067 million and Adjusted EBITDA of HK$420 million
  • On 28 February 2013 gaming operations at Casino Jai Alai, which consisted of 14 mass market
    gaming tables and 84 slot machines, were suspended due to the renovation of the Jai Alai Palace.
  • Cash: HK$27,661 million and debt: HK$1,672 million 
  • Capital expenditure of the Group during Q1 2013 was HK$131 million, which was primarily for
    furniture, fixtures and equipment, and leasehold improvements