Dec 02, 2015 Newsdesk Latest News, Macau, Top of the deck  
Emperor Entertainment Hotel Ltd, owner and operator of Macau casino property Grand Emperor Hotel (pictured), reported a 57.7 percent year-on-year decrease in profit for the six months ended September 30, to HKD111.5 million (US$14.4 million).
The Hong Kong-listed firm said in a Monday filing the decline was attributable to a net loss on the valuation of its hotel portfolio due to the downturn in Macau’s property market. Profits were also impacted by an exchange loss on offshore traded renminbi deposits and a decline in gaming revenue.
The company’s revenue for the period decreased to HKD873.4 million from HKD1.1 billion a year earlier. Earnings before interest, taxation, depreciation and amortisation (EBITDA) and after non-controlling interests was HKD274.1 million, a decline of 16.3 percent in year-on-year terms.
During the six months ended September 30, the group’s gaming revenue at the casino in Grand Emperor was HKD739.9 million, a decrease of 17.9 percent compared to a year earlier. Gaming revenue accounted for 84.7 percent of Emperor Entertainment’s total revenue.
During the same period, market wide gross gaming revenue in Macau declined 36.0 percent, according to data from city’s casino regulator.
Against market trends, Emperor Entertainment managed to achieve a revenue growth in its VIP gaming operations, “leveraging its strong and loyal premium customer base,” it stated.
During the reporting period, the group directly managed a 10-table VIP room in the casino. The rolling chip amount in that room for the six months ended September 30 was HKD10.2 billion compared to HKD11.4 billion a year earlier. Despite the decline in rolling chip turnover, revenue from the VIP room grew by 17.5 percent to HKD252.2 million, Emperor Entertainment reported.
Market wide, gross revenue from VIP baccarat gambling in Macau declined 40.3 percent year-on-year in the six months ended September 30.
The casino at the Grand Emperor Hotel operates under a licence from Macau gaming firm SJM Holdings Ltd.
Looking ahead, Emperor Entertainment stated “the uncertainties in the macro economy, and the regulatory headwinds towards the gaming market, will continue to pose challenges to all gaming operators in Macau”.
It added: “In view of a propensity for gambling and rising income levels among Chinese, the group remains cautiously optimistic about the prospects for tourism and the gaming market in Macau in the long run. The group continues to seek and evaluate potential expansion opportunities in the city, aiming to drive long-term growth.”
Emperor Entertainment acquired in 2014 the Best Western Hotel Taipa. The venue has been rebranded as Inn Hotel Macau. It does not include gaming facilities.
The company declared an interim dividend of HKD0.028 per share, down from HKD0.05 a year earlier.
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