LEISURE LETTER (11/2/2015) - WYNN, 0296.HK, UBER

TICKERS: WYNN, 0296.HK, UBER

EVENTS

November 3: 10:00AM: NCLH 3Q CC 

November 3: 10:00AM: RHP 3Q CC  

November 3: 10:00AM: H 3Q CC - , PW: 52469697

Novmber 4: 4:30PM: AWAY 3Q CC - ,PW: N/A

November 4-6: Anthem of the Seas Dead Cruise/Investor Event

November 5: 8:30AM: MPEL 3Q CC - , PW: MPEL

headline news 

Macau Transit Visas -  Macau’s transit visa scheme “is set to undergo a significant positive shift at year end,” says a new note from Union Gaming Securities Asia Ltd, quoting “multiple local sources.”  According to Union Gaming’s note, “persons entering Macau (ostensibly) for the purposes of transiting to a third party country would be allowed to stay for up to 14 days (from 7) upon one’s first entry into Macau during any given month, and would then be allowed to stay up to 7 days (from 2) for a second entry during the same month.”  

ARTICLE HERE

Takeaway: Government trying to make a difference, on th positive side.

COMPANY NEWS   

WYNN - Wynn Resorts executives unveiled a handful of tweaks to their design for a $1.7 billion hotel and casino complex in Everett, MA including the substitution of a smaller, premium “ultra lounge” for a previously planned nightclub.  In a presentation to the Massachusetts Gaming Commission, Wynn said the size of the entire resort had only increased by about 3%.  

  • Wynn’s new plan calls for about 37,000 square feet of convention and meeting space. The “ultra lounge” is a newer approach to bars, DeSalvio said, which is currently being developed by Wynn in Las Vegas.  
  • Wynn said the change was, in part, driven by the difference in liquor laws between Massachusetts and Nevada.  “In Las Vegas, you can keep the bars open all night. And here, you can’t,” said DeSalvio, president of Wynn Everett.

ARTICLE HERE

Takeaway: We're still skeptical on the ROI

 

SUNCITY GROUP - Alvin Chau Cheok Wa, owner and chairman of major Macau junket operator Suncity Group, says it is “absolutely possible” that the city could see growth in casino earnings again next year, and that the trend of continuous closures of VIP gaming rooms seen in recent months would end.  The Suncity boss believes that Macau's gaming market has now bottomed out as “all the bad news” for the industry has already been digested and reflected.

ARTICLE HERE

Takeaway: While we're positive on the stocks over the near term, we've heard the bottoming story before. I suppose gaming revenue growth could turn positive - we're forecasting a GGR decline - but earnings? 

 

0296.HK - Emperor Entertainment Hotel Ltd, owner and operator of Macau casino property Grand Emperor Hotel, said it expects to record a “significant decrease” in consolidated net profit for the six months ended September 30, 2015, compared to the prior-year period.  The decline is attributable to “a net loss on the hotel property valuation due to the downturn of the Macau property market,” the company said in a filing to the Hong Kong Stock Exchange on Friday. The net loss “is a non-cash item and will not have a direct impact on the operation of the group,” the firm added. 

ARTICLE HERE

 

PAGCOR - The state-run Philippine Amusement and Gaming Corp (Pagcor) reported net income of PHP3.2 billion ($68.3 million) for the first nine months of 2015, up by 37.1% YoY. Pagcor said it was 24.6% ahead of its own PHP2.6 billion target for net income in the nine-month period.  Total revenue for the first nine months of 2015 rose 18.7% YoY to PHP35.7 billion, Pagcor reported. For the third quarter alone, total revenue was PHP10.9 billion.

ARTICLE HERE

 

UBER - In Germany, Uber withdrew from three major cities after the regulators urged the company to file in complex paperwork. Now, Uber officially abandoned Düsseldorf, Frankfurt and Hamburg.  In Germany, the only places where the car hailing app is still operational are Munich and Berlin.

ARTICLE HERE

INDUSTRY NEWS

Macau GGR - Macau’s casino GGR for October fell by 28.4% YoY to MOP20.06 billion ($2.5 billion), according to data released on Sunday by the city’s regulator, the Gaming Inspection and Coordination Bureau. It was the 17th straight month of GGR retreat measured year-on-year but the best monthly tally for the industry since May. 

ARTICLE HERE

Takeaway: Slightly better than anticipated

 

Macau Slots - Macau Gaming Equipment Manufacturers Association president Jay Chun thinks the gaming industry’s shift toward the mass market as the VIP market slumps is an opportunity for gaming machine makers to exploit, Business Daily reports.  “The industry is focusing on increasing the proportion of mass market,” the newspaper quotes Mr Chun as saying in an interview given in advance of this month’s Macao Gaming Show, which his association organises.  

ARTICLE HERE

 

Taiwan Casino - Residents in Taiwan’s outlying island of Penghu could vote again on whether to allow casinos in the county, reports Taiwan’s Central News Agency. The local government’s Referendum Screening Committee on Friday approved a proposal to hold a referendum early next year.  The success of Taiwan’s casino industry however could depend on mainland China’s visa policies.  Mainland China officials earlier this year have ruled out the idea of that country’s citizens being allowed to gamble in Taiwan casinos if such schemes ever come to fruition.

ARTICLE HERE

 



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