Despite cautious commentary, big beat on higher VIP volumes in Q1
CONF CALL NOTES
- 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