Macau-based Emperor Entertainment Hotel Ltd says it is “optimistic” about the future despite struggling to capitalize on Macau’s recovery in the six months to 30 September 2017, with revenue from gaming activities down 13.5% to HK$350.6 million.
Emperor operates two hotels in the city, including its flagship Grand Emperor Hotel on the Macau Peninsula – where the company’s gaming operation is based – and Inn Hotel Macau in Taipa.
In a filing to the Hong Kong Stock Exchange on Wednesday, Emperor reported a 13.7% year-on-year fall in gross win to HK$626.5 million for the period, while VIP roll fell 21.2% to HK$10.4 billion and VIP revenue 6.3% to HK$217.9 million from its 10 VIP tables at Grand Emperor Hotel. The group said that gaming accounted for 49.9% of total revenue.
“In view of intensified competition in Macau and other countries, the group continuously enhances its overall efficiency and strengthens its market position through capitalizing on its competitive edges, including a strong network of quality customers and outstanding customer service,” Emperor said.
“In response to market conditions, the group actively manages customer segmentation and focuses on the segment which offers the greatest potential for growth, in order to maximize its profitability.
“The industry’s recovery is gaining momentum, with gaming receipts witnessing year-on-year growth for 15 consecuitve months. Upon the completion of large-scale tourism projects, along with government initiatives to boost infrastructure, Macau’s position as a global leisure and tourism hub will be further reinforced. On the demand side, sustained growth in Macau’s gaming market is expected, on the back of the increase in numbers of Chinese outbound travellers, which is largely driven by the expanding wealth effect and the rise of China’s middle class.
“The group is optimistic regarding growth prospects for Macau’s gaming market and is actively reviewing growth strategies and value-creating opportunities in Macau.”
Emperor said that it had been negatively impacted by incremental capacity being added in Cotai, with group-wide revenue down by 10.5% to HK$702.1 million. Profit for the period increased by 12.8% to HK$118.6 million “due to a decrease in selling and marketing expenses.”