Revenue Rose 25.2% to HK$843.8 million
Adjusted EBITDA Up 17.6% to HK$431.6 million
HONG KONG, Aug. 26, 2013 /PRNewswire/ -- Macau Legend Development Limited ("MLD" or the "Company"; SEHK Stock Code: 1680), one of the leading owners of entertainment and casino gaming facilities in Macau, today announced unaudited consolidated financial information of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2013 (the "Period").
FINANCIAL HIGHLIGHTS
The Group
MFW Group
The Group completed the acquisition of Macau Fisherman's Wharf International Investment Limited and its subsidiaries (the "MFW Group"), which operates Macau Fisherman's Wharf ("MFW") on 18 May 2012 and since then the Group consolidated the results of MFW Group. As such, the consolidated results of the Group for the six months ended 30 June 2012 included results of MFW Group for the period from 19 May 2012 to 30 June 2012.
OPERATIONAL HIGHLIGHTS
Gaming
Non-gaming
MFW Redevelopment
For the six months ended 30 June 2013, the Group recorded total revenue of HK$843.8 million, an increase of HK$169.9 million or 25.2% over that of the last corresponding period. Gaming revenue and non-gaming revenue of the Group increased by 19.2% to HK$623.0 million and by 45.8% to HK$220.8 million respectively when compared to the last corresponding period.
Co-Chairman, Executive Director and Chief Executive Officer, Mr. David Chow, said, "The increase in gaming revenue was primarily driven by the increase in revenue from both the mass market and VIP gaming segments at Pharaoh's Palace Casino and the consolidation of revenue from gaming services of MFW Group at Babylon Casino of HK$69.2 million for the full reporting period."
"The Group's reported profit for the period amounted to HK$266.7 million. When we exclude those One-off Listing Costs associated with the Listing, the Group's profit for the period amounted to HK$306.2 million, an increase of HK$18.6 million or 6.5% over that of the last corresponding period of HK$287.6 million," Mr. Chow said.
Adjusted EBITDA for the current period grew by 17.6% to HK$431.6 million. The increase in Adjusted EBITDA was mainly due to the increase in Adjusted EBITDA from the gaming operations of both Pharaoh's Palace Casino (by HK$67.7 million or 18.3%) and Babylon Casino (which in turn was mainly due to full six-month consolidation in current period but only for the period from 19 May 2012 to 30 June 2012 for the last corresponding period).
During the current period, operations of MFW Group (including gaming and non-gaming) started to generate positive Adjusted EBITDA contribution to the Group of HK$3.2 million (six months ended 30 June 2012: negative Adjusted EBITDA of HK$5.8 million).
The Group's profit excluding MFW Group for the period amounted to HK$321.2 million, an increase of HK$23.3 million or 7.8% over that of the last corresponding period of HK$297.8 million. The increase was mainly attributable to the increase in profit generated from the gaming operations at Pharaoh's Palace Casino in the current period when compared to the last corresponding period.
Mr. David Chow, said "This is the Group's first results announcement following our successful listing on the Hong Kong Stock Exchange on 5 July 2013, and we are please that the first half of the year was very fruitful. During this period, we recorded encouraging results and the redevelopment project of Macau Fisherman's Wharf also progressed as planned in terms of timing and costs."
The directors of the Company do not recommend the payment of an interim dividend for the six months ended 30 June 2013.
FINANCIAL AND OPERATIONAL REVIEW
Gaming Operations
Gaming revenue growth driven by increase in mass market table wins and VIP game turnover
As at 30 June 2013, the Group had a total of 325 slot machines and 150 gaming tables in its two casinos, Pharaoh's Palace Casino at The Landmark Macau and Babylon Casino at Macau Fisherman's Wharf. On 31 May 2013, 12 gaming tables were temporarily not in operation at two VIP rooms at The Landmark Macau. Among the 150 gaming tables, Pharaoh's Palace Casino has 60 mass gaming tables and 67 VIP tables while Babylon Casino has 23 mass gaming tables. On 27 July 2013, a new VIP room utilizing 6 of these gaming tables commenced operation. The Group is now screening for a gaming promoter to operate the other VIP room at The Landmark Macau.
For the six months ended 30 June 2013, the Group posted a total gaming revenue of HK$623.0 million, a 19.2% increase as compared to that of HK$522.5 million in the last corresponding period.
The average number of mass gaming table at the Pharaoh's Palace Casino was reduced from 66 to 60 for the six months ended 30 June 2012 and 2013, respectively as tables were relocated to VIP rooms at The Landmark Macau. This increased the average number of VIP tables to 59 in the current period from 52 in the last corresponding period.
Revenue from mass market tables for the period increased by 20.8% to reach HK$549.4 million from last year. The increase was primarily driven by increase in both games drop and hold rate at the Pharaoh's Palace Casino. This improvement was despite a reduction in the average number of mass gaming tables at Pharaoh's Palace Casino during the period. During the period, net win per table per day of the mass market tables at the Pharaoh's Palace Casino amounted to HK$81,000, representing a 20.9% increase over the last corresponding period.
Revenue from VIP rooms for the period increased by 17.7% to HK$68.1 million from the last corresponding period. The increase was primarily attributable to the increase in average number of VIP tables during the period. The increase in games turnover during the period also contributed to the improved VIP revenue. Net win per table per day of VIP tables for the period recorded a growth of 4.2% to reach HK$319,000.
Non-gaming Operations
MFW Redevelopment project progresses as planned
For the six months ended 30 June 2013, the Group's total non-gaming revenue increased by 45.8% to reach HK$220.8 million. Non-gaming revenue for the current period from The Landmark Macau and Macau Fisherman's Wharf accounted for 59.4% and 40.6% of the total non-gaming revenue, respectively.
Hotel Operations
The Landmark Macau and the Rocks Hotel achieved an average occupancy rate of 91.9% and 79.0% respectively during the period, while MFW attracted a total of around 1.7 million visitors, a 3% growth compared to that of the last corresponding period.
During the period under review, renovation work at The Landmark Macau was on schedule. Over 50% of the hotel rooms have completed renovation on 30 June 2013 and the renovation work of the remaining hotel rooms will be substantially completed by the end of 2013. The construction of the sauna and spa facility, which is expected to occupy a gross floor area of approximately 3,160 square meters, also commenced and is expected to be completed by the third quarter of 2013.
MFW Redevelopment
During the period, the MFW redevelopment project progressed as planned in terms of timing and costs. Construction of superstructure of the Harbourview Hotel has been commenced with three floors already erected. Demolition work of Tang Dynasty has started and is expected to be completed by first quarter of 2014 allowing for construction of the Legend Palace Hotel on this site. An agreement has also been entered into between Macau Animal Fossil Preservation Association and the Group for the supply and technical assistance of dinosaur fossils for display in at the planned Dinosaur Museum at MFW.
Cooperation with Dynam
On 23 August 2013, the Company entered into a Memorandum of Understanding for Business Cooperation (the "MOU") with Dynam Japan Holdings Co., Ltd. ("Dynam"). Pursuant to the MOU, Dynam will establish and operate a minimum of 100 next generation pachinko machines and other electronic games at various sites at MFW, commencing in 2014, subject to approval from the Macau government. In addition, under the terms of the MOU, Dynam will enter into a marketing joint venture agreement with the Group.
Prospects
Commenting on the prospects of the Group, Mr. Carl Tong, Co-Chairman and Non-executive Director, said, "We are confident in the long-term growth prospect of the Macau gaming industry. The Macau government's support in terms of policies and infrastructure improvements will further facilitate the influx of visitors. The redevelopment of MFW will transform tourism in the Macau Peninsula, offering one-stop family entertainment as well as cultural and educational experiences."
"As the Company completes the MFW Redevelopment over the next few years, the Group will benefit from opportunities created by the completion of major transportation and infrastructure networks in Macau. Upon completion of the MFW Redevelopment, the number of hotel rooms of the Group will increase from the current of 511 to nearly 1,800 and the number of gaming tables at the casinos in The Landmark Macau and MFW will increase from current of 150 to 500. We are well positioned to capture the opportunities ahead of us," concluded Mr. Chow.
