Emperor Entertainment H1 revenue, EBITDA fall; seeks expansion

Emperor Entertainment Hotel, which operates two hotels and gaming facilities in Macau, posted a decline in profit and revenue for the six months ending Sept. 30th and said it’s seeking expansion opportunities to boost long-term growth.

Emperor operates the Grand Emperor Hotel and earlier this year acquired the Best Western Hotel on Taipa, which is currently under renovation until 2015.

“The acquisition of BWH serves to greatly expand the group’s accommodation capacity to cater to growing customer demand. Upon completion of its upgrading works in 2015, BWH will provide the group with steady returns on capital and deliver incremental revenue,” it said in a release to the Hong Kong Stock Exchange. It gave no further details on potential expansion plans.

In the six month period, the group said revenue fell 4.2 percent to HK$1.05 billion ($135.4 million), as spending by Chinese visitors declined.

Earnings before interest, tax, depreciation and amortisation and after non-controlling interests decreased by 3.8 percent to HK$327.3 million.

Profit attributable to the owners of the company was HK$263.7 million down from HK$278.3 million a year ago. The group also cut its interim dividend to HK$0.05 from HK$0.06 per share.

“The group strives to pursue an effective customer segmentation strategy with strong focus on premium mass market. During the period, the group’s gaming revenue had decreased moderately owing to a subdued consumer spending and a tough comparison base with the same period last year,” it said.

Group gaming revenue decreased by 9.9 percent to HK$901.6 million, accounting for 85.6 percent of total revenue.

 

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