2014 Annual Results Presentation FY14 Results Highlights FY2014 - - PowerPoint PPT Presentation

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2014 annual results presentation fy14 results highlights
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2014 Annual Results Presentation FY14 Results Highlights FY2014 - - PowerPoint PPT Presentation

Apr 08, 2023 372 likes •487 views

Paradise Entertainment Ltd (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

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Paradise Entertainment Ltd

匯彩控股有限公司

(1180.HK)

2014 Annual Results Presentation

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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

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Consolidated Results

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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

66.5 103.8 (35.9%)

  • Due to initial overheads at new casinos; U.S. patent amortization of HKD66.9 million; loss on

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

41.9% 32.4% 950 bps

  • Revenue sharing EBITDA contribution

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

  • 162.8

160.9 55.5 67.0

0.0 50.0 100.0 150.0 200.0 250.0 2013 2014

EBITDA

Gaming System Casino Service

32.4% 41.9% 19.0% 15.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2013 2014

EBITDA Margin

Gaming System Casino Service

(HK$ M)

859.2 1,032.2 171.2 160.1

0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 2013 2014

Revenue

Gaming System Casino Service

(HK$ M)

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Segment Results – Casino Service

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Casino Kam Pek Paradise

Table Quota:

45

Traditional Table:

37

LMGs:

870

Slot:

~200

0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Kam Pek Paradise GGR

Slot LMG Traditional Table (HK$ M)

67,364 70,835

65,000 66,000 67,000 68,000 69,000 70,000 71,000 72,000 2013 2014

Net Win/Table/Day

1,258 1,829

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2013 2014

Net Win/LMG Terminal/Day

1,020 1,189

900 950 1,000 1,050 1,100 1,150 1,200 1,250 2013 2014

Net Win/Slot/Day

*8 out of 45 tables converted to LMGs in Kam Pek, remaining 37 tables operate as traditional tables

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Segment Results – Casino Service

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Casino Waldo

Table Quota:

30

Traditional Table:

28

LMGs:

138

Slot:

N/A

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Waldo GGR

LMG Traditional Table (HK$ M)

38,944 46,410

34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 2013 2014

Net Win/Table/Day

34.6 41.3

30.0 32.0 34.0 36.0 38.0 40.0 42.0 2013 2014

Average Monthly GGR Growth

(HK$ M)

^2 out of 30 tables converted to LMGs in Waldo, remaining 28 tables operate as traditional tables

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Segment Results – Casino Service

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0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2Q14 3Q14 4Q14

MJC GGR

LMG (HK$ M)

0.0 2.0 4.0 6.0 8.0 10.0 12.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Lisboa LMG Hall GGR

LMG (HK$ M)

Casino Macau Jockey Club

Table Quota:

4

Traditional Table:

N/A

LMGs:

172

Slot:

N/A

Casino Lisboa LMG Hall

Table Quota:

2

Traditional Table:

N/A

LMGs:

234

Slot:

N/A

~1 out of 4 tables converted to LMGs in MJC, 3 converted to E-tables**

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Segment Results – Gaming System

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3,045 3,539

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2013 2014

LMG Deployment

Overseas Macau - Third-party casinos Macau - Casinos under management

Intelligent Cash Access Machine E-baccarat Table Introduction of New Products

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Milestones Achieved in 2014

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  • 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
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Outlook

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  • 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
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Contact Information

Hong Kong Office

Unit C, 19/F., Entertainment Building, 30 Queen’s Road Central, Hong Kong SAR Tel: (852) 2620 5303 Fax: (852) 2620 6000

Macau Office

Suite 1207, 12/F., Macau Landmark,

  • No. 555 Avenida da, Amizade, Macau

Tel: (853) 2878 7656 Fax: (853) 2878 7848

www.hk1180.com www.ltgame.net Investor Relations

Bryan Wu, Investor Relations Manager bryanwu@hk1180.com paradise.ir@hk1180.com (852) 2916 0817 Peggy Ma, Investor Relations Officer peggyma@hk1180.com paradise.ir@hk1180.com (852) 2916 0809

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Paradise Entertainment Ltd. 匯彩控股有限公司 (1180.HK)

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