LEISURE LETTER (08/13/2015) - WYNN, MPEL, Airbnb





August 28: 10:00am: PENN - Meeting with Management at Plainridge Park  


WYNN - Global casino giant Wynn Resorts may be contemplating a push into New South Wales, Australia (NSW) after its representatives met with Deputy Premier and gaming minister Troy Grant to discuss investment opportunities.  According to the latest NSW government ministerial diary summaries, representatives from Wynn Resorts met Mr Grant on May 13. The purpose is recorded as an "introductory meeting" to discuss "investment in NSW".
Takeaway: Worth pursuing...

MPEL - Billionaire James Packerstepped to step down as chairman of Australia’s Crown Resorts Ltd. Mr Packer will remain co-chairman both of Asian casino developer Melco Crown Entertainment Ltd and the “Alon Resort” casino-hotel project in Las Vegas, the company said in a filing.



Bloombery - Reported a net loss for the second quarter of 2015. The group’s unaudited results for the three months to June 30 show a net loss of approximately PHP773.54 million ($16.75 million) compared to a net gain of about PHP846.60 million in 2014.

  • Revenues for the three-month period increased by 9.4% YoY to PHP5.99 billion. 
  • Operating costs however jumped 47.2% from a year earlier to PHP5.61 billion in the second quarter of 2015. Including other items, total costs topped PHP6.27 billion, up 58.7% from a year ago.
  • Jump in costs tied to the opening of Solaire’s, Sky Tower and the acquisition of Jeju Sun Hotel and Casino in South Korea. 
  • GGR was PHP7.49 billion for the three months to June 30, up from PHP6.90 billion in the prior-year period
  • Rebates for junket operators and VIP guests however increased by 15.5% YoY to PHP2.01 billion



Airbnb - Reported yesterday that Airbnb acquired apartment rental startup, RentMethod.  This is not a formal acquisition. RentMethod is shutting down and two of its founders have joined Airbnb.  Customers who used RentMethod are being encouraged to port over their data to other solutions, to which the company will provide a list in the future.  



Macau Gaming License Study - The study the government is making in preparation for its forthcoming review of gaming licences is in the pipeline, and officials mean to have the first draft of the study report completed by the end of next month, Chief Executive Fernando Chui Sai On has said. 

  • Mr Chui told the Legislative Assembly that his government expected to begin soliciting public opinion on the findings of the study this year.

  • “The review will focus on eight aspects, including the impact of gaming on the Macau economy, small and medium enterprises, society and the relationship between gaming and the development of non-gaming activities. The review will also study if the current contracts with operators have been fulfilled and if they are assuming their social responsibilities,” he said.



Regional Gaming Revenues


AC - July GGR (SSS): +7.1 YoY 

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