Macau casino operator Emperor Entertainment Hotel Limited, which runs Grand Emperor Hotel and Inn Hotel Macau, saw its group-wide revenue fall 5.2% to HK$665.6 million in the six months to 30 September 2018, due primarily to a “lackluster” performance in its mass market gaming segment.
Gaming revenue declined 6.8% to HK$546.7 million in the period, with mass revenue down 11.6% to HK$309.8 million on the company’s 67 mass tables.
By comparison, VIP revenue held steady for the period at HK$217.4 million although rolling chip fell 6.7% to HK$9.7 billion on Emperor’s 10 self-managed VIP tables.
Discussing the results, Emperor pointed to expanded capacity in Cotai as impacting its flagship Grand Emperor property on the Macau peninsula, adding that the company will now look to enhance its VIP business which it describes as its “core strength”.
Despite the overall gaming decline, Emperor Entertainment saw a strong revenue increase in its hotel segment to HK$118.9 million.
As a result of streamlining efforts, it also enjoyed an 8.7% increase in profit attributable to owners of the company to HK$128.9 million. Emperor declared a dividend of HK$0.028 cents per share.
“The group is still positive regarding the long-term growth prospects for Macau’s gaming market given the increasing visitation and penetration of Chinese tourists to the city,” it said.
“The improvement in transport link connecting the Chinese mainland and Macau also provides an underlying support for a sustained growth. The group is devoted to leverage on its competitive advantages and capture value-creating opportunities in Macau.”