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Takeaway: 1Q miss driven by weak VIP volumes. Lost more share to Marina Bay Sands (LVS) in 1Q.

Q & A

  • Environment for VIP market has weakened significantly 
  • Do not see this VIP business coming back anytime soon
  • VIP win %: 2.5%
  • VIP rolling volume market share: 48%
  • On gross level, 43% Mass/57% VIP
  • 41% GGR market share
  • 41% mass market share
  • No weakness on mass business as S'pore casinos are very regional 
  • Made some minor changes to VIP commissions paid
  • Mass hold rate: ~25%
  • 43% slot market share
  • Universal Studios Singapore spend $81; 9,000 visitors on a daily basis.
  • Marine Life Park spend $29; 6,700 visitors on a daily basis
  • VIP volume came down quite a bit
  • Gaming spend per visitor down as well
  • Industry Singapore hotel performance have come down as visitor arrivals have jumped
  • VIP relationships are much more difficult.  Bad debt provision will be similar in 2Q
  • VIP volume decreased by 18% QoQ, 48% decline YoY
  • Mass volume holding steady
  • Korea: Jeju general assembly passed casino ordinance this morning. Process of casino license should go smoothly.
  • Japan: casino bill introduced to national parliament.  Debate will start in next 2 months. More optimistic on bill than past months. 
  • Jurong hotel opened 144 rooms (~50% of inventory); full opening will be some time in June. Bookings are very encouraging. Weekends are running full with leisure and casino customers. Giving promotions to casino rewards customers. Running shuttle from hotel to RWS on a 24-hour basis. Gaining traction for family/wedding events.
  • Regional business is steady (mass/VIP)
  • Net win VIP/mass mix: mass 72%
  • Fair value derivatives loss not due to FX swings, but due to other hedges (e.g. utilities). These derivatives are being wound down.
  • Chinese visitors to Singapore have jumped significantly 
  • Hold-adjusted EBITDA: S$250m
  • Slot hold not major change
  • Share buyback program: no plans to reduce share buyback but will not disclose a specific target. 
  • Need to come to agreement with Jeju govt some time in 2016