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Despite cautious commentary, big beat on higher VIP volumes in Q1


  • Best performing RC Volume ever
  • 2014 will have a challenging macro economy; Chinese economy unstable; cautious view
    • Indonesia - two elections coming up
  • Mass revenue:  flat in the past two years; will be flattish in the next few months.
  • Macau Junket incident:  must have some repercussions in the Macau market.  Will not know for sure in the next 2-3 months.  Will not significantly affect Singapore since that market doesn't use junkets.
  • VIP RC volume share:  59%
  • VIP revenue share:  55%
  • VIP breakout:  Chinese still most important.  Indonesia and Thailand also a big segment.
  • Japan:  gaming bill may pass in Lower House at end of May.  Will go to Upper House some time in early June - will be more challenging because ruling party does not have majority there
  • Number of high rollers have increased due to improvement in regional logistics
  • VIP win rate %:  3.0%
  • Mass share:  44%
  • Have not seen much impact from Malaysia/Korean incidents
  • Stronger Singapore $:  affects mass market (esp Malaysia); number of trips remain the same but bet per trip has gone down.  Eventually will affect number of trips too.
  • Chinese macro will affect premium mass market
  • Hold-adjusted EBITDA is same as reported EBITDA since they use 3.0% as normal
  • GGR win breakout:  62%VIP,  Mass 38%
  • Higher 1Q receivables impairment:  case by case basis.  
  • Jeju:  will receive building permit by end of June.  Will have groundbreaking event June/early July. 
    • No comment on Landing (their partner).  thinking of acquiring a separate small casino in Korea
    • Have not finalized submission plans; will build a 2,800 room hotel
  • Quite optimistic on Jeju Island - Chinese nationals do not need a visa to travel to Jeju, as opposed to traveling to Seoul;  Jeju only 1 hour flight from Shanghai. Northeast China has 800 million (no more than 2 hour flight).
  • VIP rolling volume grew 19% QoQ and 10% YoY
    • Extended reach of customers
    • 10% YoY growth sustainable?  It will be challenging.
  • 16k visitation breakout:  60% visitation USS, 40% visitation to Marine Life Park;  average spending USS $85, average spending MLP $33
  • Capex guidance:  
    • Jeju:  US$1 billion 
    • Jurong hotel: S$200 million (1Q/2Q 2015 projected opening), most of capex will be done in 2014