Inside Asian Gaming

INSIDE ASIAN GAMING | May 2012 102 International Briefs Briefs dubbed ‘Eurovegas’. “We are looking at 12 integrated resorts, 3,000 rooms each. A mini Las Vegas, about half the size of the Las Vegas Strip in Spain for the European market,” he said. Barcelona and Madrid are both in the running to be chosen as the location for the company’s Spanish project, although LVS is understood to be seeking certain concessions before it makes its final decision. According to Reuters , Mr Adelson also spoke of his plans to develop additional integrated resorts in Asia, pending new legislation. He said his company is “looking to build two each” in Japan, Korea and Vietnam. IGT results highlight interactive gaming business potential As highlighted by Las Vegas Review-Journal , International Game Technology’s earnings report for the quarter ended 31st March included a few sentences about the performance of the company’s recently-acquired interactive gaming business, which offer a clear indication of where that segment could be headed. IGT grew revenues 13% year- on-year to US$541.2 million in the quarter that ended 31st March (which marks the second quarter of the US 2012 fiscal year). The company said $300 million of the overall revenues came from its gaming operations division, which includes revenue from its interactive business as well as slot machines run on a participation (revenue share) basis. The gaming operations division saw revenues jump 11% in the quarter, “primarily due to increases in the interactive businesses and installed base,” said IGT. IGT’s interactive business consists of Entraction Holdings, a Swedish online poker operator IGT bought last year for US$115 million. Earlier this year, IGT added to its interactive portfolio by spending $500 million to acquire social gaming provider Double Down Interactive, which developed Facebook’s Double Down Casino. IGT said Double Down Casino increased its monthly users by 24% to 5.6 million as of 31st March, compared with the figure at the end of December. That’s an indication of strong interest in what could be a platform for online gambling should it be legalized in the US. IGT’s gaming operations revenue growth was also driven by a 7% year-on-year increase in its installed base of participation devices by the end of the quarter to 56,100 units worldwide. Credit Suisse gaming analyst Joel Simkins said that by providing additional disclosure and metrics on the Double Down business model, IGT was helping investors better understand and assess the merits of the acquisition. “As expected, our financial results are strengthening as we move through the fiscal year,” IGT Chief Executive Officer Patti Hart said in MGM Resorts Q1 revenues up, but net loss grows MGM Resorts International reported a US$203.3 million loss in the first quarter of 2012, compared with a loss of $89.8 million in the same quarter last year. The figures translated into a loss per share of 44 cents, compared to 18 cents per share in the 2011 first quarter. With results from the MGM Grand Macau now part of the company’s overall quarterly earnings, MGM Resorts said revenues grew 51% to US$2.3 billion. Without the Macau casino, MGM Resorts said its overall revenues would have still increased 5%. “We continue to see growth across our domestic business fundamentals with revenues, casino volumes, (revenue per available room) and adjusted cash flow all increasing year over year,” MGM Resorts Chairman Jim Murren said in a statement. MGM Resorts’ net loss included provisions for various taxes and loss for debt retirement. On the Strip, MGM Resorts saw its net revenues increase 5.6% year-on-year to US$1.17 billion in Q1 2012. At the Bellagio, net revenues increased 13%. At CityCenter, which includes the Aria, net revenues declined $234 million compared with $263 million in the prior year quarter while adjusted cash flow fell to $32 million from $64 million. MGM Resorts said Aria’s table games hold percentage was significantly below the low end of its normal range, affecting what the company collected in gaming revenues. The MGM Grand Macau earned net revenue of US$702 million, an 18% increase. At the end of the quarter, MGM Resorts had approximately $13.4 billion of long-term debt. LVS plans to build “mini Vegas” in Spain Las Vegas Sands Corp Chairman and CEO Sheldon Adelson revealed his company plans to invest US$35 billion to develop a“mini Las Vegas” in Spain. Speaking last month at a press conference ahead of the opening of the company’s latest Macau resort, Sands Cotai Central, Mr Adelson unveiled his plans for the Spanish project, which has already been Earnings drag—Aria Resort & Casino There is widespread local opposition to Mr Adelson’s proposed Spanish project IGT CEO Patti Hart