GGRAsia – Macau ops confident in achieving non-gaming rev target

Macau ops confident in achieving non-gaming rev target

Apr 28, 2016 Newsdesk Latest News, Macau, Top of the deck

Executives of Macau-based casino operators on Wednesday expressed confidence in achieving the government suggested target for non-gaming revenue as a proportion of all revenue they generate.

In a proposal for Macau’s future development covering the period 2016 to 2020, the government states that non-gaming revenue should account on average for at least 9 percent of all revenue generated by casino operators by 2020. The government estimates such non-gaming revenue was 6.6 percent in 2014.

“Everyone here is confident in achieve that [target of 9 percent], but it will take time,” said Linda Chen, executive director and chief operating officer of Wynn Macau Ltd.

The Wynn Macau executive was speaking to reporters on the sidelines of the Forum on Macao Gaming Operators and Corporate Social Responsibility.

She added: “Casino operators each have their own way to run their business, but for Wynn we definitely have the confidence in achieving the target because our non-gaming revenue has already exceeded 6 percent [of the overall revenue].”

“I believe that non-gaming [activities] can bring up gaming business, and it can also drive the businesses of the local small and medium companies,” Ms Chen said.

The annual results filed by Macau’s six casino operators to the Hong Kong Stock Exchange show that the weight of non-gaming revenue was still a fraction of their overall revenues in 2015.

Wynn Macau’s annual report shows that the company’s non-gaming revenue stood at HKD1.21 billion (US$155.9 million) in 2015, excluding promotional allowances. It accounts for approximately 6.33 percent of the firm’s total operating revenues last year, at HKD19.1 billion.

Data compiled by GGRAsia show that Sands China Ltd is the gaming operator in Macau getting the most revenue out of non-gaming elements. Sands China’s non-casino revenue was US$1.08 billion in 2015, accounting for about 15.89 percent of the firm’s overall revenue in that year.

SJM Holdings Ltd remains Macau’s most gaming-focused operator. Only 1.18 percent of its overall revenue for full year 2015, the equivalent to HKD581 million, came from sources beyond gaming, according to the firm’s annual report.

On Wednesday, Angela Leong On Kei, executive director of SJM Holdings, told reporters that the 9-percent target for non-gaming revenue is “not difficult” to achieve.

“I’m positive that this target can be achieved as stated in the plan, or even above that percentage,” Ms Leong said.

The executive added that SJM Holdings would explore the possibility of holding more cultural activities and strengthen cooperation with small- and medium-sized enterprises to push for more non-gaming business.