Kingston’s gaming revenues down 4.6 pct

Investment holding company Kingston Financial Group Limited said its gaming business in Macau had registered a year-on-year decrease of 4.6 per cent in revenues for the year ended March 31, which is contradictory to the 34.2 per cent increase that the company posted for its total revenues in the same period, according to its filing with the Hong Kong Stock Exchange after trading hours on Tuesday. The Hong Kong-based company, which owns Casa Real Hotel and Grandview Hotel in Macau and runs casino operation in the two properties under the gaming licence of Sociedade de Jogos de Macau, S.A. (SJM), said its total revenue for the last fiscal year reached HK$2.48 billion (US$309 million) compared to HK$1.85 billion the year before, which contributed by its securities brokerage, underwriting and placements, margin and IPO financing businesses. In addition, the company said its profit attributable to shareholders also surged 63.4 per cent year-on-year to HK$1.26 billion, while basic earnings per share reached HK7.25 cents compared to HK4.44 cents in 2013. Nevertheless, its annual gaming revenues generated in the SAR, which include gaming revenue and food and beverage sales in casinos, amounted to only some HK$678 million, decreasing by some HK$32.6 million from HK$711 million, representing a year-on-year drop of 4.6 per cent. Slowdown in Macau ‘The two casinos consistently provided solid contributions to the Group in line with the healthy growth of the gaming industry in Macau. To strengthen customer loyalty and attract potential ones, the Group bolstered its membership programmes and provided a variety of incentives for members to increase their spending in the casinos as well,’ the company remarked. According to the filing, the company has 58 gaming tables for the mass market and 13 for its self-managed VIP rooms, in addition to 224 slot machines and 136 live baccarat machines in its electronic gaming halls as at the end of March. Despite decreasing in gaming revenues, the revenues the company earned from its hotel operations rose by 5.2 per cent year-on-year to HK$259.7 million from HK$246.9 million. The company indicated the average occupancy rate of Casa Real Hotel and Grandview Hotel was about 87 per cent and 78 per cent, down 2 percentage points and 6 percentage points, respectively. ‘Although the slowdown of Macau tourism and China’s anti-corruption campaign put pressure on the industry, the Group is cautiously optimistic about its operation because a large part of its segment income is derived from the local market,’ the Group wrote, claiming it will continue to upgrade its programmes to attract more new customers. K.L.