• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Dore Ent was only 4 pct of Wynn Macau EBITDA: CS

Sep 15, 2015 Newsdesk Latest News, Macau, Top of the deck  


Dore Ent was only 4 pct of Wynn Macau EBITDA: CS

Dore Entertainment Group Ltd contributed only approximately 4 percent of casino resort Wynn Macau’s annual earnings before interest, taxation, depreciation and amortisation (EBITDA) even before an alleged large theft of capital by a junket employee, said a note on Monday from Credit Suisse AG in Hong Kong.

“Even if we conservatively assume the [Dore] business dropped by half, its annualised EBITDA impact would be HKD120 million [US$15.5 million] or 2 percent of our expected HKD5.2 billion EBITDA for Wynn Macau in 2015,” wrote analysts Kenneth Fong and Isis Wong.

Macau junket operator Dore has confirmed allegations it has been a victim of internal fraud by a former employee. The junket operator however did not confirm the amount of money involved.

David Bain of brokerage Sterne Agee CRT said in a note on Monday: “Our checks cite approximately HKD270 million or US$35 million (far from the up to HKD2 billion in some reports) was lost. Of note, police notices were officially filed by 24 investors/depositors.”

Wynn Macau Ltd, operator of Wynn Macau, issued on Monday a voluntary statement to the Hong Kong Stock Exchange saying Dore “owes no money to the company”.

“The company hopes that all parties will be able to resolve their differences in the near future. The company will continue to monitor the situation,” stated Wynn Macau.

A number of investment analysts have said Dore was operating 25 tables at Wynn Macau.

“According to our check, Dore VIP room is still in operation,” wrote the Credit Suisse team on Monday.

Credit Suisse added that according to its inquiries, the Dore VIP facilities at Wynn Macau in total generated around HKD7 billion of rolling chip turnover in August. It said this was equivalent to HKD200 million VIP gross gaming revenue (GGR) at a 2.85 percent win rate or HKD20 million of EBITDA a month, assuming a 10 percent margin.

“The key risk is that there is contagion to other junkets over concerns from agents and junket investors about junket liquidity,” said brokerage Sanford C. Bernstein Ltd in a note issued from Hong Kong on Monday.

“We would caution investors on over exposure to operators with large junket VIP business, given the continued uncertainty surrounding junket operations,” said the brokerage’s analysts Vitaly Umansky, Simon Zhang and Bo Wen.

Credit Suisse said in its view the Dore case did not have parallels with the April 2014 case of a junket firm called Kimren, where Huang Shan, one of the principals, reportedly accepted a lot of side bets and outside deposits and was reported to have absconded with HKD8 billion to HKD10 billion.

Mr Bain of Sterne Agee CRT said: “We believe six junkets account for over 80 percent of the VIP market in Macau (the list does not include Dore) and those groups are mostly capitalised with retained earnings, not new investors.”

In other developments, Sino Credit Holdings Ltd, a Hong Kong-listed firm with interests in pawnbroking and lending operations in mainland China, on Monday morning suspended its shares and issued a statement after the close of business that day saying it had not been involved in Macau junket operations since 2013 or with Wynn Macau since 2010. Its shares were due to resume trading at market opening on Tuesday.

The company was formerly known as Dore Holdings Ltd  and changed its name to Sino Credit Holdings Ltd in January 2014.


  • tweet
Related articles
  • Investors see 2H Macau gain, rebound 2022: Bernstein
    Investors see 2H Macau gain, rebound...

    Jan 19, 2021  

  • Macau Jan GGR likely to dip 60pct y-on-y: Bernstein
    Macau Jan GGR likely to dip 60pct...

    Jan 12, 2021  

More news
  • Londoner Macao first phase launch Feb 8 says Sands China
    Londoner Macao first phase launch Feb 8...

    Jan 21, 2021  

  • Grand Lisboa Palace backer SJM taps circa US$1bln in notes
    Grand Lisboa Palace backer SJM taps...

    Jan 21, 2021  


Latest News

Londoner Macao first phase launch Feb 8 says Sands China

Londoner Macao first phase launch Feb 8 says Sands China

Jan 21, 2021  

The first phase of the newly-rebranded Macau casino resort the Londoner Macao is to be launched on February 8, the property’s promoter Sands China Ltd, announced on Thursday. The company said the...
Read More
Grand Lisboa Palace backer SJM taps circa US$1bln in notes

Grand Lisboa Palace backer SJM taps circa US$1bln in notes

Jan 21, 2021  

Sands China sixth Macau op to pledge staff extra payment

Sands China sixth Macau op to pledge staff extra payment

Jan 21, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"Our expansion from 2021 and beyond will create tremendous opportunities to team members”

Francis Lui Yiu Tung

Vice chairman of Macau-based casino operator Galaxy Entertainment



Most Popular

  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino op MGM China to pay most staff discretionary bonusCasino op MGM China to pay most staff discretionary bonus January 18, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Investors see 2H Macau gain, rebound 2022: BernsteinInvestors see 2H Macau gain, rebound 2022: Bernstein January 19, 2021
  • Wakayama casino RFP deadline affirms still 2 suitorsWakayama casino RFP deadline affirms still 2 suitors January 18, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us