Iao Kun rolling chip up in Aug despite challenging backdrop
Nasdaq-listed junket operator Iao Kun Group Holding Co Ltd announced an unaudited rolling chip turnover increase of 3 percent in year-on-year terms for August. The company promotes five VIP rooms in Macau.
Total rolling chip turnover – a metric used by casinos to measure the aggregate amount of player bets and overall volume of VIP gaming room business – for the month was US$1.53 billion, the firm said in a statement on Wednesday.
Iao Kun’s win rate for August was 2.50 percent.
The increase in rolling chip turnover was achieved against a challenging environment in Macau, especially in the VIP segment, which has been down for most of the year to date.
Macau’s casino industry has been posting market-wide year-on-year monthly revenue drops since June. Casino gross gaming revenue (GGR) dropped by 6.1 percent in August, to MOP28.9 billion (US$3.6 billion).
Initial channel checks by Credit Suisse AG show August GGR from the VIP segment was down by “high-teens on a year-on-year basis (worse than [the] -14 percent year-on-year in July 2014) on lower luck factor”.
Iao Kun’s rolling chip turnover for the eight months to August 31 was US$12.56 billion, an average of US$1.57 billion per month, and up by 9 percent in year-over-year terms, the firm said.
The company recently reported a year-on-year 22-percent drop in revenue, to US$49.7 million, for the three months to June 30.
The firm is proceeding with an application for a dual listing on the Hong Kong stock exchange. It is targeting to complete the operation later this year.
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