Profit at Macau casino hotel operator Emperor Entertainment Hotel Ltd increased 13.6 percent year-on-year in the 12 months to March 31, the firm said in a filing to the Hong Kong Stock Exchange on Wednesday. But overall revenue – and gaming revenue – was down for the reporting period.
Profit for the financial year was HKD393.6 million (US$50.2 million) compared to HKD346.5 million in the previous year.
The group runs the 307-room Grand Emperor Hotel (pictured) in downtown Macau. As of the end of the reporting period, the property’s casino – operating under the SJM Holdings Ltd gaming licence – had 67 mass-market tables, 172 slot machine seats, and a self-managed VIP gaming room with 10 tables. Table count remained the same as in the prior-year period, while slot machine seats were up marginally by two units.
The group also operates a Macau hotel with no gaming: the 287-room Inn Hotel Macau, formerly known as Best Western Hotel Taipa.
Emperor Entertainment Hotel said the increase in group profit for the period was mainly due to “a decrease of selling and marketing expenses and exchange loss, as well as a revaluation gain recognised during the year, as compared to a revaluation loss in the last year.”
During the reporting period, the group’s overall revenue fell by 7.1 percent year-on-year, to just almost HKD1.50 billion.
Emperor Entertainment Hotel said its performance for the year ended March 31 had been “inevitably affected” by “incremental capacity” added on Macau’s Cotai district.
“The introduction of other casino resorts in Cotai has resulted in market share dilution on the Macau peninsula, where the group’s casino complex is located,” Emperor Entertainment Hotel stated. It added: “Facing keen competition from the new casino resorts, the group strived to mitigate the impact by improving customer segmentation.”
The firm’s gaming revenue declined by 8.0 percent in year-on-year terms during the reporting period, to HKD1.25 billion.
Gross win in the mass gaming floor was HKD1.29 billion versus 1.39 billion one year earlier. Rolling chip turnover in Emperor Entertainment Hotel’s self-managed VIP room also declined in the year ended March 31, to HKD22.4 billion from HKD24.7 billion a year earlier.
The board recommended a final dividend of HKD0.057 per share. Together with the interim dividend of HKD0.026 per share, the total dividends per share for the year are HKD0.083.
Looking ahead, Emperor Entertainment Hotel’s management stated it was “optimistic regarding growth prospects for Macau’s gaming market, and is actively reviewing growth strategies and value-creating opportunities” in the city.
Dec 03, 2020Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, has since November 30 required all customers at its Paradise Casino Walkerhill venue (pictured) in Seoul, to show evidence of a...
Dec 03, 2020
Macau casino gross gaming revenue in November