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Highlighted financials 

  • Q2 Gaming Revenue -28% YoY
  • Q2 Non Gaming Revenue -3% YoY 
  • Q2 Adjusted EBITDA - S$296.46 million, -6% YoY
  • Q2 Unadjusted EBITDA - S$107.865 million, -60% YoY
    • (Includes the effects of losses on financial derivatives)
  • Resorts World Sentosa contributed revenue of S$577.8 million, a drop of 23% YoY. Poor VIP business to blame. 
  • No dividend declared for Q2. Dividend of 1 cent was declared for Q1 2015. 
  • Q2 2015 eps - S$(0.14)

Q & A 

Rolling VIP volumes? VIP win rate?

  • Rolling VIP volumes -11% QoQ
  • VIP win rate - 2.1% 

VIP share of total volume? Mass share, Mass GGR?

  • 37% VIP, Mass volume 43% this Q, Mass GGR was 41% 

Overall GGR performance YoY

  • GGR -28% YoY
  • VIP GGR -36% YoY
  • Mass GGR +2% YoY

Accounts Receivable down substantially? Why?

  • They are being a lot more cautious in the VIP space. They are quite concerned with their ability to give credit. They have tightened their collection procedure quite significantly as a result of their lack of confidence in the Chinese economy. 

FX reserves are high because they must pay their customers back in the same currency they came there with. 

What drove the drop in value of your financial derivatives? 

  • The prices derive directly from the price of the public listed equities. The value of those equities has fallen off and therefore the derives have fallen off. 
  • Very limited color on how the values are derived. Would not disclose additional information on these derivatives. 

They do not hedge any of their currency exposure. 

Why is the mass market growing for you guys? 

  • They include mass and premium mass together. Very concerned with the volatility of the currencies in the surrounding countries. They get a lot of business from Malaysia and the Malaysian ringgit has continued to depreciate. This could hurt their mass and premium mass business. 

Cost cutting measures? What have you implemented?

  • Mostly reductions in the VIP business headcount through natural labor attrition. Could see further reductions in headcount. 

Ability to pay dividends and increase dividends?

  • Probably able to consider an increase in 2016 depending on how results rebound. 

Buy back to continue?

  • Yes, they have a lot of shares they can buyback, will move forward with the buyback as originally planned. 

Korea, whats the status of getting a gaming license? 

  • Property is well underway and construction is on track. The government is putting together the regulations and they should have the regulations finished by Q12016. Bottom line: They have to wait for the regulations to come out before they can submit their license application. Could be a 6 month wait until the application is processed and approved. 

ADR this Q?

  •  S$275

Market stabilizing?

  • Sentiment is still very negative from their perspective. They still see overall volume and GGR trending downward over the next 12 months. 
  • Currency issues in the surrounding countries remains a major problem and could further hurt visitation and GGR. 

Does the low win rate has to do with the breadth of players, or is it the table mix?

  • Not the table mix. From a statistical standpoint they do not know why their win rate remains so low. They are "praying" for it to get better. 

Slot mkt. share in Q2?

  • 43% for the Q. (for the entire slot business)

What are the derivatives linked to? Which equities? US, AUS, UK?

  • No comment.