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Hold adjusted in-line with us but nicely above the Street. Dividend policy a plus


  • Premium mass will continue to be supported by infrastructure developments
  • 4Q luck-adjusted property EBITDA margin increased 400bps YoY to 28.6%
  • CoD Manila:  will open around mid-2014
  • New dividend policy: distribute 30% of net income
  • Macau still underpenetrated
  • Record CNY:  remarkable strength in mass market segment
  • 4Q luck-adjusted (2.85% hold) property EBITDA: $380MM (+36% YoY, +12% QoQ)
  • Mass EBITDA: 75% of luck-adjusted EBITDA at CoD and 70% on group-wide basis
  • 1Q guidance
    • D&A: 95-100MM
    • Corp expense: 24-26MM
    • Consolidated net interest epxense ; 31-33MM ($11MM CoD Manila, $17 Studio City, net of $18MM cap interest for CoD Manila/Studio City)

Q & A

  • Not surprised with January's slowness due to before CNY period
  • Need to look Jan and February together to get a sense of business trends
  • Tax situation in Phillippines:  working with PAGCOR
  • 2nd wk of CNY:  very strong; some VIPs customers coming this week and weekend; pattern repeating from last year
  • 4Q High mass hold: combination of service and floor strategy, putting more premium tables which is sustaining the high hold; high hold is sustainable
  • Will continue to move tables from Altira to CoD
  • Mass win per table:  is there a threshold?  No.
  • CoD:  creating a new high-end slot area on ground floor, new F&B experience on 2nd floor (also potentially more gaming machines) --projects may be completed in mid-2014
    • Total capex for both projects:  $30MM
  • Japan:  open-minded to opportunities
  • Altira EBITDA per table low compared with Starworld:  VIP EBITDA per table is on par with the market
  • CoD opex:  not concerned; bonus provision for 4Q was modestly higher than in previous quarters
  • CoD direct VIP:  did not hold well 
  • CoD 5th Tower:  PR event in 2Q will unveil budget and features
  • MSC:  will be the only stand-alone property to open on Cotai; on schedule, on budget