Macau’s SJM going gangbusters

While Las Vegas is still struggling to shake the remnants of post-GFC funk over in Macau the party is well and truly back in full swing after the briefest of pauses.

Las Vegas Sands Corp recently reported their Q2 2010 results and as a company straddling both Vegas and Macau, these results served to highlight the divergent fortunes of the world’s two big gambling towns.

Of group EBITDA of $473 million only $66 million came from Vegas operations, an impressive $94 million from the fledgling Marina Bay in Singapore , and the remaining $300 million-odd coming from Macau.

While the Vegas strip is doing its best to squeeze more cash from frugal players with party pit 6-5 blackjack tables, mass market table gaming revenue in Macau has increased 36% over the last 12 months.  VIP gaming increases are even more impressive…a whopping 85% according to a report in Macau Business.

Guess who’s a happy man?

If Macau’s doing well Stanley Ho is doing well – and typically just that little bit better than his competitors there. And this has been reflected in the just reported results of his company SJM Holdings which posted a 6 month profit of HK$1.57 billion.

This is a…wait for it…364% increase on the same period last year!  This included an overall gaming revenue jump of 79%, which comprised mass market table gaming revenue growth of 40% and VIP gaming growth of 111%; indicating the Macau junket market is well and truly pumping again and Stanley’s casinos are plugged into it up to their eyeballs.

SJM’s CEO Dr So (Ho is Chairman) commenting on the results said, “We expect that the year 2010 will be a rewarding one.” It seems Dr So isn’t one to overstate things.

So where do you go from a 364% profit increase?  A company spokesperson had this to say…

“Drs So and Ho both know you can’t go slow after a jumbo show.  This would be a no-no and give competitors the ammo to borrow and show more sicbo, lotto, bingo and keno that would narrow our lead and bring sorrow to our casino.   Dr Ho learned long ago that so-so gusto not does not make a hero and the other fellow, Dr So is a gung-ho pro so there will be no go slow.  Dr Ho and Dr So are in a chateau in Bordeaux sharing some info over some cocoa and sourdoughThey will send a memo to our corporate bureau in SoHo and return via limo and then hello, with the power of a sumo we bestow a crushing blow on those other casino minnows.”

Sounds ominous.

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