Very low VIP hold - hold adjusted EBITDA beat our estimate slightly and grew YoY.  Still more aggressive than MBS, Genting has become more cautious issuing credit. VIP continues to significantly outperform MBS.   




  • Very unlucky in VIP:  just below 2% versus theoretical of 2.85%
  • VIP as a % of net gaming rev: +19%
  • Bad debt:  S$40m
  • Normal hold % used:  2.85%
    • Rolling chip volume:  61%
    • Mass volume (slots/tables):  44%
    • GGR:  49%
  • Japan: Still optimistic will pass in next session (starts in January and ends in June 2015).  Have been studying S'pore model.  Legislation will include ability for locals to gamble. Construction time likely 4 years. 
  • Per management, Genting is not buying VIP share
  • Outlook:  mass continues to do relatively well.  Optimistic that they can maintain VIP volume in 3Q into 4Q.
  • So far in 4Q, VIP is having a normal
  • Jeju:  pretty optimistic that they will get something done in 1H 2015; media has been positive about the development.  Jeju govt also support the development.  Will have an announcement in 1H 2015.  
  • Tax changes in Jeju:  will only invest if the project is profitable
  • Jurong hotel:  on schedule, on budget; start opening in May 2015 (160 rooms).  The rest of rooms (400 rooms) will open in June/July.  Want to target Malaysian market, leisure/mass punter.
  • Average spend USS: S$80
  • Average spend MLP:  S$30
  • Jeju changes:  want to expand MICE offerings  
  • Will be more cautious on extension of VIP credit
    • VIP RC lower than previous quarter
  • Why they outperform MBS on VIP?  Genting has good relationships with their high rollers.  
  • Less concerned about non-Chinese business.  They are a growing segment.
  • Rolling Chip Volume decline:  just above 10% YoY

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