CONF CALL
- Revenue run rate equal to 2011
- Final 2014 div/share of $0.62
- Permission have been granted to resume construction work two days ago on Casino Jai Alai. New timeline will take around one year. Total capex: HK$1bn. 130 rooms and 45 gaming tables.
- Hard to conclude GGR has bottomed
- Lisboa Palace: still expect 1H 2017 opening
- Capex 2015: $HK7.1 bn ($HK5.8 bn due to Lisboa Palace)
- Lower occupancy at Grand Lisboa due to junkets giving back some room inventory (5%/21 rooms). Signing more rooms to mass and premium mass.
- Galaxy Macau Ph 2:
- Dividend payout policy: no less than 50% of net profits. 70% payout is still sustainable.
- Have not seen an acceleration of Junkets closing
- Visa cap: do not see any further tightening of visa. 21m as a cap is talked about.
- Smoking ban: still govt discussions being made on smoking lounges
- Cost control due to tough conditions: costs held stable QoQ. Pulled $23m in labor/opex costs out in Q1.
- 5% corporate pay raise in Q1. Living subsidies also increased in Q1.
- Gaming volumes picked up in recent weeks in April.
- Premium mass impacted by visa restrictions
- Slowdown impact (in that order): Premium mass, grind mass, and slot win
- Rest of 2015 capex (HK$1.3bn): Grand Lisboa- some slot upgrades and maintenance capex
- Want to inject more some VIP tables into mass.
- % promo expenses/revenues: flat QoQ
- Grand Lisboa 1Q VIP win %: 3.26%
- Have not heard of Mainland govt loosening policies due to poor economic data
