CONF CALL
- 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
