Inside Asian Gaming

INSIDE ASIAN GAMING SEPTEMBER 2018 12 Melbourne drives strong VIP recovery for Crown Resorts Premium gaming on the rise at Resorts World Manila VIP gaming volumes are back on the rise at Resorts World Manila (RWM), according to stakeholder Alliance Global Group. The Philippines conglomerate, which co- owns RWM operator Travellers International Hotel Group alongside Genting Hong Kong, said in a press release announcing its group- wide financial results that there were signs of improvement at its flagship IR following the deadly attack last June that saw 39 people lose their lives. Although gaming revenues fell 3% to Php4.5 billion during the first six months of PREDICTIONS OF A quick rebound in the VIP segment for Australian casino operator Crown Resorts have come to fruition with VIP turnover in FY18 climbing 54.5% to AU$51.5 billion. The results still lag some way behind the AU$65.1 billion in turnover Crown booked for FY16 but represent a considerable improvement over its AU$33.3 billion last year following the arrests of 19 staff in mainland China in October 2016 for promoting gambling. Crown’s group revenue for the 12 months grew 5.4% to AU$3.5 billion, including a 9.5% increase in revenue at flagship property Crown Melbourne to AU$2.3 billion. On a normalized basis, VIP revenue at Crown Melbourne jumped 73.9% to AU$591.8 million, with turnover of AU$43.8 billion. Main floor gaming revenue grew 4.6% to AU$767.1 million with slot machine revenue basically flat at AU$449.9 million. Normalized VIP revenue at Crown Perth fell 5.8% to AU$103 million while mass gaming revenue declined 4.1% to AU$198.8 million. Group-wide EBITDA grew 0.3% to 2018, “the VIP segment has started to recover with drop and GGR already improving on a quarterly basis,” Alliance said. “The launch of a portion of the Grand Wing is expected to further buoy the premium gaming business at RWM.” RWM shut down its second-floor gaming area after last year’s attack but has since launched part of its new Phase 3 Grand Wing including some new gaming space with the addition of 35 gaming tables and 414 slot machines. That capacity will double in the coming weeks once construction is completed. AU$792.4 million while normalized EBITDA climbed 6.1% to AU$878.3 million. “Crown’s full-year result reflects a solid performance from our Melbourne operation and continued subdued trading in Perth,” said Executive Chairman John Alexander. “Total normalized revenue across Crown’s Australian resorts increased by 10.6% on the prior comparable period. Main-floor gaming revenue increased by 1.5%, with modest growth in Melbourne offset by softness in Perth. VIP program play turnover in Australia of $51.5 billion was a pleasing outcome, particularly at Crown Melbourne given the difficult trading conditions in the (previous year).”