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  • Reclassification of some premium mass tables into VIP
  • 6-month interim dividend of 20 cents vs 10 cents last year
  • Cotai:  HK$423 capex in 1H 2013; HK$1.654 billion committed
  • Commenced work on the renovation of the Jai Alai Palace building - new walkway to Casino Oceanus will be completed in 4Q 2014 

Q & A

  • Dividend policy:  Doubled the dividend because they want to pay out at least 50%; present payout of dividend is sustainable.
  • Jai Alai renovation:  HK$600MM capex allocated (HK$100MM was spent in 1H 2013); currently planning one junket with 40 tables
  • Staff costs up 16% YoY:  +5% wage raises effective at beginning of year; higher bonuses, increase in non-gaming staff
  • Grand Lisboa performance:  VIP revenue -18%, mass revenue -1%; VIP volume: -1.8%; 2.69% win rate (excludes premium mass) (vs. 3.24% in Q1); had taken 10 VIP tables out of play but have put those back in play in Q3; July record chip sales; expect to see to improvement in premium mass (already seeing it this quarter).
  • Hold:  SJM 3.06%, Grand Lisboa: 2.95% (incl premium mass), self-promoted casinos: 2.89%
  • Macau Legend HK$149MM investment:  one-off gain; still hold shares in company in cash
  • End of September:  6-8 more junket tables coming into Grand Lisboa; 12-16 more premium mass tables 
  • ROI on Oceanus:  +40% on original investment of slightly over HK$1 billion
  • 3rd party table count:  drop in tables due to Greek Mythology
  • Cotai One - land next to Macau Studio City:  no development in the near future
  • Old Lisboa:  60bps adverse hold impact,  -4% VIP volume, mass revenue flat
  • Cotai:  waiting for construction permit; no comment on budget