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Takeaway: Disappointing all around. Even on a hold-adjusted basis, Q4 missed expectations. Lower market share and cautious VIP commentary.


  • Jeju:  will be 1st major integrated resort in Korea
  • Market share #s:
    • GGR: 42%
    • RC volume: 54%
    • mass drop: 43%
    • Slot/ETGs: 43%
  • 4Q VIP hold rate: 2.2%; hold-adjusted win is 2.85%
  • Genting: has become more prudent, not accepting as much VIP players as before; VIP has become more risky and players getting more cash-strapped. 
  • VIP 2015 outlook: challenging. 
  • Will look closely at their provision for bad debt. It will not be pretty for one or two quarters
    • Bad debt increased 42% YoY in Q4.
  • Q4 Mass revs as a % of GGR: 56%
    • 75% revenue contribution in slots/ETGs? You could say that.
    • Slots have gone up slightly while ETGs have been flat. 
    • Mass table revenues slightly down
    • Very focused on promos
  • Japan: lot of activity to try to push the casino bill through. Still hopeful the bill gets through some time in May.
  • Scaling back VIP business.  Will focus on mass and premium mass business. Expect no growth in VIP for rest of year.
  • Jeju:  has received construction approvals for IR. Waiting for bill to be presented to Jeju govt. Once that is done, govt will gazette the regulations. Expect casino license in 6-12 months.
  • Jurjong:  soft opening in April 2015. Fully open by June 2015. Expect 80-85% occupancy in initial stages. Expect 1,500/1,600 people to visit the attractions. Should boost casino attendance. 
  • Korea:  no information on junket operations.  
  • Share repurchases: stopped in January because of quiet period (blackout period).  No comment on further share repurchases.
  • Large gains in Q4 balance sheet:  exiting most of the portfolio investments in preparations for Jeju/Japan.  Needed cash.
  • More optimistic on Japan than other people.  Diet Parliament ends in June. 
  • Why not raise dividend of 1 cent?  Still need to consider where they stand on cash flow.  May raise in future.
  • Q4 VIP RC Volume decreased 12% YoY
  • 2014 VIP RC volume unchanged YoY
  • Provision for bad debt:  jump in longer-term debt. In Q4, number of customers either they negotiate for longer-term payment or that they have no money.  Going forward, provisions may be higher.
  • Jurong hotel vs RWS pricing: Jurong pricing will be much lower than Sentosa. Room rates of S$200 (RWS had S$422 in Q4). Room sizes are smaller.
  • Jeju # of tables:  unsure until casino bill is enacted
  • RW Jeju:  casino license will be issued by Governor of Jeju
    • Genting HK Korea license is different but gaming tax will be the same
  • VIP volume:  softness throughout but impact from Mainland China particularly strong 
  • Japan:  hasn't been less enthusiastic on gaming legislation
  • 2015 Capex:  nothing major. Opening Puss/Boots at USS and Battlestar in April
  • 20k visitors (12k USS, 8k in MLP).   USS $80 spend/visitor; MLP $30 spend/visitor
  • Jurong construction costs not major: $50-60m
  • Jeju capex for rest of year: do not need to put in any more money
  • Mass initiatives: coming up with few more programs along with Jurong hotel