Low hold impacted Q2 results but hold-adjusted EBITDA was in-line with Street
CONF CALL
- Encouraged by VIP volumes but hold was low
- 2Q VIP rolling volume +29%
- Gained share in mass market
- 2Q Mass gaming revenue +19%
- S'pore tourist arrivals projected to slow in coming years
- Monitoring situation in Japan
Q & A
- Japan: optimistic but the clarity is not there yet. 1st piece of legislation may be passed by end of 2013 - will know where the IR will be set up. 2nd piece of legislation that may be passed in 2014 will have more details on the structure/regulation on IR.
- 2Q Hold-adjusted EBITDA: S$364MM
- Have earned more than enough to pay the interest on perpetual securities
- Trade receivables didn't increase despite surge in VIP volume - expanded database and continued to gain loyalty from customers
- July credit outlook: no changes yet but still cautious
- Severe haze impact on EBITDA: not significant
- 2Q GGR share: 47%
- 2Q RC volume share: 49%
- 2Q Mass/slot share: 47-48%
- 2Q VIP win rate: 2.5%
- Net gaming revenue breakout: 30% VIP; 70% mass
- No increase in commissions
- Long-term solution to labor issue: increase productivity; govt helping them with new grants to help with the productivity
- 3rd IMA: has not impacted VIP business
- Combined S'pore mass market: no revenue growth; with new regulations put in place, do not believe they will see growth in this segment
- Local visitors will trend down
- Overseas visitor growth slowing down
- Cannot compare with Macau
- Is S$17BN RC volume pace sustainable? No guarantees.
- Mass market revenue growth (QoQ) : low single digit (marginal)
- Pachislot machine market: US$13 billion
- Premium mass vs VIP: VIP (+$100k players), premium mass ($20-100k players)
- Increased promotional spending on premium mass (free hotel room, etc)
- Cost cuts: have reduced employee count by 800 since beginning of year; payroll is biggest expense item
- Gross VIP/mass gaming revenue mix: 50/50
- VIP volume in 2Q 2012: leadership transition did not have an impact since it was in Q4 2012
- USS ship: 10k average visitation ($83 average spend); MLP 9k average visitation
- Korea: need to open to locals in order to consider investment there
- More cautious than Q1 outlook? track record has always been extremely cautious. Same level of caution in Q2.
- Long-term 15-16MM visitor goal: thinks that number will come down
- Mobile bookings increased 20% QoQ
- Overall visitation has slowed but it hasn't been significant
