Portfolio of Kimberly Johans

A collection of articles created during my stint as a journalist at The Macau Daily Times

Archive for the ‘Casinos’ Category

Wynn profits more than triple for second quarter

Posted by Kimberly on August 1, 2008

By Kimberly Johans
Published in The Macau Daily Times
August 01, 2008 (388 words)

Macau’s status as the world’s gambling city was firmly entrenched with Wynn Resorts showing their second-quarter earnings in 2008, had more than tripled compared to the same period last year. This was mainly due to a tax windfall and strong growth in revenue from its Macau property, despite a dip in sales from their hometown.
Earnings for the quarter ending June 30 jumped to $272 million, or $2.42 per share from $89.6 million, or 82 cents per share during the same period last year.
According to Wynn’s statement, this was a result of higher earnings from Wynn Macau and a $140.7 million deferred tax benefit recorded during the quarter.
Adjusted net income in the second quarter was $124.3 million, or $1.11 per diluted share, compared with an adjusted net income of $100.8 million, or $0.92 per diluted share in the second quarter of 2007.
With regard to the company’s tax benefits, the statement issued showed that during the quarter, Wynn Resorts completed a study of the taxes, levies and obligations assessed on its Macau operations under Macau law and its Macau Gaming Concession, which resulted in the $140.7 million deferred tax benefit.
There was a 20 percent increase in revenue for the second quarter, to $825.2 million, compared with $687.5 million in the same period of 2007, driven primarily by a 50.3 percent increase in revenues from Wynn Macau. Meanwhile, Wynn’s Las Vegas revenue dropped 24 percent.
Wynn Macau generated revenues of $529.9 million in the second quarter of 2008 compared with $325.5 million during that period last year. Read the rest of this entry »

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It’s the season of discontent for Stanley Ho and Pac On

Posted by Kimberly on November 22, 2007

By Kimberly Johans
Published in The Macau Daily Times
November 22, 2007 (558 words)

The announcement to the media of Dr Ho’s press conference yesterday evening came just hours before the event at the Grand Lisboa, where the Macau casino magnate pointed out the apparent inconsistencies of the license awarded to Cotai WaterJet and Grand Dragon to operate Pac On Ferry Terminal, ferrying passengers between Taipa and Hong Kong.

Quoting his interpretation of Macau’s Gaming Law No. 16/2001 (Legal Framework for the Operations of Casino Games of Fortune), he stated that “the scope of activities permitted to gaming concessionaires shall be exclusively the operation of the games of fortune and chance and other casino games.”

As a result, he added, “since shipping is not within the scope of gaming business, the grant of a ferry operation license to a gaming concessionaire is in conflict with the law and the rationale behind such a law.”

He felt that without a legally binding and “transparent tender procedure”, the granting of the license lacked “fairness, justice and openness.”

Yet, if one were to read the Law in its entirety, it makes it difficult to be entirely confident of Dr Ho’s statement of exclusivity.

According to Article 3(6) of the Law, operations offered to the public were excluded from casino concessions but with an exception. Read the rest of this entry »

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Wynn results show 94 percent net drop, Macau doubles revenue

Posted by Kimberly on November 1, 2007

By Kimberly Johans
Published in The Macau Daily Times
November 1, 2007, page 6 (455 words)

 

Third quarter results for Wynn Resorts Ltd showed a drop of 94 percent in net income, from $715.7 million or $6.43 per share to $44.7 million or $0.41 per share, mainly due to the completion of the sale of the company’s Macau sub-concession, which had boosted results last year.
In 2006, Wynn Resorts sold the rights to develop a casino in Macau for $900 million to Publishing & Broadcasting Ltd. and Melco International Development Ltd.
Wynn Las Vegas’ table games win percentage of 26.4 percent was higher than the expected range of 21 percent to 24 percent and exceeded the third quarter of 2006 results of 22.3 percent.
The company earned 67 cents per share compared with $0.01 per share in the third quarter of 2006, whereby analysts estimated earnings of 60 cents a share, based on the average of nine projections compiled by Bloomberg.
Wynn’s report showed an almost doubling of net revenues from $318.1 million in the third quarter of 2006, to $653.4 million for this quarter, which was driven by the opening of Wynn Macau as well as strong results from their Las Vegas arm. Read the rest of this entry »

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Gaming revenue jumps 46 percent in third quarter

Posted by Kimberly on October 19, 2007

By Kimberly Johans
Published in The Macau Daily Times
October 19, 2007, page 7 (363 words)

Macau’s gross revenue from gaming for the third quarter of 2007 rose dramatically by 46 percent to 20.34 billion patacas from 13.95 billion patacas over the same period last year, according to figures released yesterday by the Gaming Inspection and Co-ordination Bureau.
This figure brings the total over the past nine months to 58.32 billion patacas. This sees an increase of 47 percent over the same period in 2006, where that total was 39.7 billion patacas and already had reached beyond the total for the whole year of 2006, of 56.62 billion patacas.
Greyhound racing also saw a sharp rise in revenue during the third quarter of 2007 as opposed to the same period in 2006, from 14 billion patacas to 22 billion patacas.
Horse racing meanwhile, only saw a slight increase over the same third quarter periods of 9.5 percent, from figures in 2006 of 97 billion to 102 billion this year.
Revenue from sports lotteries, mainly football and basketball, saw a slight decrease of 6.15 percent and a significant decrease of 76.9 percent respectively between the third quarters if 2007 and 2006. Read the rest of this entry »

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GCA confirms signing of MGM Grand

Posted by Kimberly on October 18, 2007

By Kimberly Johans
Published in The Macau Daily Times
October 18, 2007, page 4 (262 words)

Global Cash Access Holdings, Inc. (GCA) had hinted to The Macau Daily Times in July at the possibility of MGM coming on-board to obtain the services of the gaming industry’s leading provider of cash access services, Central Credit.
The company confirmed this yesterday, adding that five Macau casinos, Sands, Venetian, Wynn, Galaxy and MGM, either currently use the system or are gearing up to do so.
According to the release provided, “Central Credit offers a proprietary database of gaming patron credit history and transaction data designed to help casinos improve their own credit-making decisions.”
Said Kurt Sullivan, Executive VP, Central Credit and Check Services at GCA, “Central Credit includes the records of several million gaming patrons who live in or travel to the Asia Pacific region.
“The proprietary information contained in the Central Credit database helps casinos make smart credit decisions, such as whether and how much house credit to extend, and also helps in check cashing decisions.
“The expansion of Central Credit usage in Macau only increases the robustness of the already rich database,” he added. Read the rest of this entry »

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