Paradise Entertainment Ltd 匯彩控股有限公司 (1180.HK) 2014 Annual Results Presentation
FY14 Results Highlights FY2014 reported revenue increased to HKD1,192.3 million (+15.7% yoy) Casino services revenue jumped to HKD1,032.2 million (+20.1% yoy) Gaming system decreased slightly to HKD160.1million (-6.5% yoy) Positive EBITDA growth (+2.7% yoy to HKD203.1 million) Casino service EBITDA declined marginally to HKD160.9 million (-1.2% yoy) Gaming system EBITDA climbed to HKD67.0 million (+20.6% yoy) Group’s casino services revenue grew (+20% yoy) amid challenging business environment Casino Kam Pek Paradise outperformed the Macau mass market, revenue increased 16% yoy and visitation +10% yoy , versus industry’s +15% yoy and +9% yoy, respectively Casino Waldo revenue increased 41% yoy Casino Macau Jockey Club year-end monthly GGR recorded approximately 3 million, compared to half million when re-opened in May 2014 Casino Lisboa LMG hall revenue increased >100% yoy Strong balance sheet Free cash flow over HK$200 million in 2014 (~10% free cash flow yield) Cash on hand of HK$320 million (+20.5% yoy) Final dividend FY14 declared final dividend of 5.0 cents per share Dividend payout ratio of 127% of profit after tax 2
Consolidated Results HK$M FY14 FY13 % Remarks Revenue 1,192.3 1,030.5 15.7% - Casino service revenue grew 20% yoy Casino service 1,032.2 859.2 20.1% - Casino Kam Pek and casino Waldo revenue grew 16%, 41% respectively Gaming system 160.1 171.2 (6.5%) - Slower machine sales Gross profit 648.1 585.0 10.8% EBITDA 203.1 197.7 2.7% Casino service 160.9 162.8 (1.2%) - Initial overheads at casino Waldo and MJC, casino Kam Pek EBITDA margin remain strong though Gaming system 67.0 55.5 20.6% - Revenue sharing of LMG terminals at own casinos Profit for the year - Due to initial overheads at new casinos; U.S. patent amortization of HKD66.9 million; loss on 66.5 103.8 (35.9%) early redemption of promissory note of 34.9 million; EBITDA margin (%) 17.0% 19.2% (220 bps) Casino service 15.6% 19.0% (340 bps) - Waldo and MJC EBITDA loss Gaming system - Revenue sharing EBITDA contribution 41.9% 32.4% 950 bps EPS (Basic) 5.52 15.1 (63.4%) Bank and cash balances 321.3 266.7 20.5% Dividend (HK$ cents) 5.0 5.0 - Revenue EBITDA EBITDA Margin (HK$ M) (HK$ M) 1,400.0 250.0 50.0% 1,200.0 200.0 160.1 67.0 40.0% 55.5 1,000.0 171.2 150.0 800.0 30.0% 600.0 100.0 41.9% 20.0% 1,032.2 162.8 160.9 859.2 32.4% 400.0 50.0 10.0% 19.0% 15.6% 200.0 0.0 0.0 0.0% 2013 2014 2013 2014 2013 2014 Gaming System Casino Service Gaming System Casino Service 3 Gaming System Casino Service
Segment Results – Casino Service Kam Pek Paradise GGR (HK$ M) 450.0 Casino Kam Pek 400.0 Paradise 350.0 300.0 Table Quota: 45 250.0 Traditional 37 200.0 Table: 150.0 LMGs: 870 100.0 50.0 Slot: ~200 0.0 * 8 out of 45 tables converted to LMGs in Kam Pek, remaining 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 37 tables operate as traditional tables Slot LMG Traditional Table Net Win/Table/Day Net Win/LMG Terminal/Day Net Win/Slot/Day 2,000 1,829 1,250 72,000 70,835 1,189 1,800 1,200 71,000 1,600 1,258 1,150 70,000 1,400 1,200 1,100 69,000 1,000 1,050 1,020 68,000 67,364 800 600 1,000 67,000 400 950 66,000 200 - 900 65,000 2013 2014 2013 2014 2013 2014 4
Segment Results – Casino Service Waldo GGR (HK$ M) Casino Waldo 160.0 140.0 Table 30 120.0 Quota: 100.0 Traditional 28 80.0 Table: 60.0 40.0 LMGs: 138 20.0 Slot: N/A 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 ^2 out of 30 tables converted to LMGs in Waldo, remaining 28 tables operate as traditional tables LMG Traditional Table Average Monthly GGR Growth Net Win/Table/Day (HK$ M) 41.3 42.0 48,000 46,410 46,000 40.0 44,000 38.0 42,000 36.0 34.6 38,944 40,000 34.0 38,000 32.0 36,000 30.0 34,000 2013 2014 2013 2014 5
Segment Results – Casino Service MJC GGR (HK$ M) 10.0 Casino Macau 9.0 Jockey Club 8.0 7.0 Table Quota: 4 6.0 Traditional N/A 5.0 Table: 4.0 3.0 LMGs: 172 2.0 Slot: N/A 1.0 0.0 ~1 out of 4 tables converted to LMGs in MJC, 3 converted 2Q14 3Q14 4Q14 to E-tables** LMG Lisboa LMG Hall GGR (HK$ M) 12.0 Casino Lisboa 10.0 LMG Hall 8.0 Table Quota: 2 6.0 Traditional N/A Table: 4.0 LMGs: 234 2.0 Slot: N/A 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 LMG 6
Segment Results – Gaming System LMG Deployment 4,000 3,539 3,500 3,045 3,000 Overseas 2,500 Macau - Third-party casinos 2,000 Macau - Casinos under management 1,500 1,000 500 0 2013 2014 Introduction of New Products E-baccarat Table Intelligent Cash Access Machine 7
Milestones Achieved in 2014 Casino services Officially took over Casino Waldo in March 2014 Officially took over Casino Macau Jockey Club in May 2014 Casino Kam Pek Paradise GGR exceeded HK$1.5 billion Gaming systems Signed distribution agreement with IGT for North American and Ainsworth for Australia LT Game won the IAG 2014 Supplier Award “Best Multi - Terminal Product” for its live table multi-game system Corporate Became a constituent stock of MSCI Hong Kong Small Cap Indices 8
Outlook New products, new markets, new product life cycle Introduction of E-Baccarat table, Intelligent Cash Access Machine and Double 32 (Fast Action Baccarat) to diversify product offerings Build traction in new markets (US and Australia) through our partners (IGT and Ainsworth) Demand from new casino openings - Galaxy Macau Phase II and Studio City Latest generation LMG6 to replace the existing LMG5 terminals in the market Ramping up the new casinos Opening up new slot halls at Casino Waldo and Casino Macau Jockey Club Increase marketing efforts to enhance table yield of Casino Waldo Casino Kam Pek Paradise to grow in tandem with industry’s mass market Seek out new additions to our casino management portfolio 9
Contact Information Hong Kong Office Investor Relations Unit C, 19/F., Entertainment Building, Bryan Wu, Investor Relations Manager 30 Queen’s Road Central, Hong Kong bryanwu@hk1180.com SAR paradise.ir@hk1180.com Tel: (852) 2620 5303 (852) 2916 0817 Fax: (852) 2620 6000 Peggy Ma, Investor Relations Officer Macau Office peggyma@hk1180.com Suite 1207, 12/F., Macau Landmark, paradise.ir@hk1180.com No. 555 Avenida da, Amizade, Macau (852) 2916 0809 Tel: (853) 2878 7656 Fax: (853) 2878 7848 www.hk1180.com www.ltgame.net 10
Paradise Entertainment Ltd. 匯彩控股有限公司 (1180.HK) 11
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