Suncity's rolling chip turnover still reached 18 billion yuan last month

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Suncity's rolling chip turnover still reached 18 billion yuan last month

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Macau's gaming revenue in May was stellar, and the VIP room transcoding business also saw a 20% increase, but overall revenue only edged up 6.3%. As the profit of VIP rooms is increasingly compressed, the major VIP room groups also have some countermeasures, which will show you immediately.

The Golden Week in May brought hope for the recovery of Macau's gambling industry. Last month, Macau's gambling revenue was 10.445 billion patacas, a new high since the outbreak of the epidemic in January 2020. In May, the turnover of gaming junket operators operating VIP rooms in Macau was 52 billion yuan, a month-on-month increase of 20.9%, but revenue rose only slightly by 6.3% month-on-month to 1.7 billion yuan. Among them, several major VIP rooms have seen a good increase in the number of rolling chips, especially Hengsheng has made rapid progress after entering this year, and Guangdong has also reached the level of tens of billions, which is close to Dejin.

Although the main business of the Macau casino group Suncity VIP Club, led by Zhou Zhuohua, is also facing the impact of the new crown epidemic, it has fought a "defensive wave" with its peers, but the leading position of the Suncity Group remains unchanged. According to Lu Yanyi, executive director of Suncity Group, the rolling chip turnover still reached 18 billion patacas last month. Based on this estimate, the group is still firmly in the leading position in the local VIP room industry.

Suncity is firmly in the lead, and the number of turnover in Guangdong has returned to tens of billions, closely following Chen Ronglian's Dejin Group

In May, driven by the Golden Week, several major VIP room groups in Macau experienced significant month-on-month growth. Among them, Guangdong’s rolling chip turnover increased by more than 10 billion yuan. Following the pace of Dejin, Macau’s “Ten Billion” casinos maintained a “three”. strong" situation. As for Hengsheng, after entering 2021, it has performed well. In May, the number of rolling chips has increased by more than 10 times year-on-year. The results are obvious to all.

However, since the beginning of June, as the epidemic situation in Guangdong Province in the mainland has become more severe, the entry policy between Macau and the mainland has been tightened, which immediately hit Macau's tourism and gaming industry. It is understood that the US-funded gaming company, which is mainly engaged in mass business and free behavior, canceled more than 1,000 rooms in a single day; the hotel occupancy rate of another US-funded gaming company dropped by more than 30%; The government's business will take a hit in June, compounded by a slow recovery.

The major VIP hall groups will change their business to Dejin. Guangdong's progress is faster than Sun City

In recent years, major VIP hall groups have deployed satellite field midfields and turned into operators. In addition to operating casinos in casinos under the names of major gaming companies, Suncity Group once set foot in Beijing Wangfu Hotel (Beijing Palace Hotel) Formerly known as New Century Hotel) land and project investment, trying to seek breakthroughs in major casino groups, but so far the results are not as good as Dejin and Guangdong.

Dejin and Guangdong were involved in the investment of Legend Group (1680:HK) and the lease of the mass-market gaming table operation of the Oriental Casino under SJM (0880:HK). However, Suncity Group's diversified layout has diversified its business into non-gaming projects, such as developing catering business, borrowing and financing, and even getting involved in private equity investment, diversifying its revenue and profit sources in various ways, thereby reducing the short-term income from the VIP room business. Negative effects of sluggishness. However, under the prolonged epidemic, the VIP room business still needs to support operations by controlling costs and cash flow.
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