Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
ouch November 2014 at the company’s VIP rooms in Macau was US$1.05 billion, down 30% year-over-year, compared to US$1.50 billion for the month of November 2013. Win rate for the month of November 2014 was 3.66%.
US$1.51 billion for the month of October 2013. Win rate for the month of October 2014 was 3.90%.
Aug US$1.53 billion, up 3% year-over-year, compared to US$1.49 billion for the month of August 2013. Win rate for the month of August 2014 was 2.50%.
July 2014 at the company’s VIP rooms in Macau was US$1.60 billion, up 7% year-over-year, compared to US$1.50 billion for the month of July 2013. Win rate for the month of July 2014 was 2.32%.
Iao Kun Group Holding Company Limited Announces Rolling Chip Turnover of US$1.35 Billion for June 2014
Win rate for the month of June 2014 was 2.29%.
(not so good)
Iao Kun Group Holding Company Limited Announces Rolling Chip Turnover of US$1.59 Billion for May 2014
Today : Wednesday 4 June 2014
Iao Kun Group Holding Company Limited (“IKGH”) (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of May 2014 at the company’s VIP rooms in Macau was US$1.59 billion, down 4% year-over-year, compared to US$1.66 billion for the month of May 2013. Win rate for the month of May 2014 was 2.32%. The decline in Rolling Chip Turnover was primarily due to severe rainstorms for nearly 10 days in mid-May in both Hong Kong and the Canton Province.
Q1 .05 vs .16
rev 79,938,622 vs 64,351,897
Iao Kun Group reports Q1 EPS 29c vs. 35c last year excluding items
For the three months ended March 31, 2014, IKGH recorded revenue of $79.9 million, a 24% increase from the same period of 2013. The increase in revenue was primarily a result of a higher-than-normal win rate of 3.60%, as well as revenue derived from the Oriental VIP Room which IKGH acquired in June 2013.
The decrease in net income for the three months ended March 31, 2014 was due primarily to a net increase to the contingent consideration liability for Bao Li Gaming and the Oriental VIP Room due primarily to an increase in the forecasted Rolling Chip Turnover performance based on past performance, and higher commissions as a result of a higher commission rate offered to non-credit agents and super agents. IKGH also incurred higher selling, general and administrative expenses for the three months ended March 31, 2014, including additional management fees paid as a result of the acquisition of the Oriental VIP Room in June 2013, and an increase in the number of employees due to direct employment of some employees from Pak Si and the acquisition of the Oriental VIP Room.
“We were pleased to see an improved Rolling Chip Turnover performance in our first quarter results, which helped lead to a year-over-year increase in our non-GAAP income,” said Mr. Man Pou Lam (Mr. Lam), Chairman of IKGH. “Our marketing campaign to augment our non-marker agent base remains ongoing and our overall strategy remains unchanged – we are committed to expanding our business presence in the Macau VIP gaming market and increasing our market share while prudently managing our capital to create long-term value for our shareholders.”
Outlook for 2014
For the first four months of 2014, IKGH’s Rolling Chip Turnover was US$6.49 billion (an average of $1.62 billion per month), up 17% year-over-year, compared to US$5.55 billion (an average of $1.39 billion per month) for the first four months of 2013.
The Company is maintaining its 2014 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of US$17 billion to US$19 billion.
Apr 2014 - US$1.72 win 1.90%
below 2% is bad
Iao Kun Group Holding Company Limited Announces Rolling Chip Turnover of US$1.75 Billion for March 2014
winrate 3.27%.
Outlook for 2014
For the first two months of 2014, IKGH’s Rolling Chip Turnover was US$3.02 billion (an average of $1.51 billion per month), up 18% year-over-year, compared to US$2.55 billion (an average of $1.28 billion per month) for the first two months of 2013.
The Company is providing 2014 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of US$17 billion to US$19 billion.
Repurchase Program
In November and December 2013, IKGH repurchased 732,900 shares at an average price per share of $3.10. From January 1, 2014 to March 15, 2014, an additional approximate 1.4 million shares were repurchased, at an average price of $2.94, for a total of nearly 2.14 million shares repurchased during the past four months
At the end of 2013, the Board of Directors extended its share repurchase program for IKGH on an open-ended basis to purchase up to four million of its ordinary shares on the open market at prices to be determined by IKGH’s management. Purchases pursuant to the program may be made from time to time in accordance with SEC rules and regulations through open market transactions, subject to market conditions, IKGH’s share price and other factors. The repurchase program may be modified, suspended or discontinued at any time.
Feb - US$1.73 billion, up 34% year-over-year, compared to US$1.29 billion for the month of February 2013. Win rate for the month of February 2014 was 3.60%.
must be it was leaked yesterday
KeyPoint Capital is an opportunistic hedge fund that specializes in very liquid long/short investments in real estate
New position in IKGH for the December Qtr of 1,588,302 shares
Analyst lowers estimates
Iao Kun Group Holding Co. Ltd.
Lowering estimates and price target due to market checks
citing rising agent commissions
Our Call
Macau checks continue to cite elevated junket agent commission trends. As such,
we adjust IKGH forward margins lower. Our CY14/CY15 EPS estimates go to
$0.29/$0.51 from $0.45/$0.71. Our CY14/CY15E free cash flow per share is now
$0.55/$0.66. We lower our target price to $5 from $6.25, based on 9.0x/7.5x CY14/
CY15E free cash flow per share.
Island contacts suggest “cash agents” are increasing in mix, as are overall agent
commission requirements. Relevant agents are capable of working with several
promoters, some of which host VIP rooms in the same casino facility. While strong
promoter services and relationships can offset some agent “commission fishing,”
they do not completely offset it. As a result, market-wide promoter margins have
been thinning as promoters look to maintain/gain market share.
IKGH is not immune to the aforementioned market trend, in our view. Already,
IKGH has stated it will seek to work more aggressively with cash agents, paying
higher commissions as a percentage of generated rolling chip turnover. IKGH’s
cash agent initiative should result in longer-term higher rolling volume, equating
to more gross dollars, even under suppressed margins. However, until IKGH also
loosens its credit policy toward higher-risk/non-cash credit agents, we see margin
compression outweighing potential increases in roll from acquired cash agents.
Given days sales outstanding have been growing for most promoters in the Macau
marketplace, we do not see a loosening of credit to non-cash agents by IKGH in
the immediate future.
Our new CY14/CY15E EPS of $0.29/$0.51 compares to consensus of $0.63/$0.69.
Changes are almost entirely due to an adjustment for higher commissions to agents,
though we did temper our rolling chip turnover (top-line generation) until there is
evidence that IKGH will loosen credit. 4Q14 EPS goes to ($0.13) from ($0.02) and
vs. consensus of $0.09, due to lower than theoretical hold results; IKGH releases
hold and rolling chip turnover monthly, so we view our 4Q adjustment as expected.
We retain our Buy rating given IKGH carries: 1) close to $3 per share in cash;
2) a ~20% free cash flow yield; 3) remains on track for a 1H14 HK Listing by
Introduction, a potential catalyst; 4) strong shareholder capital return policies –
15% of EBITDA to be paid as dividends, and we believe, possibilities for special
dividends beyond that; consistent share repurchases; 5) upside potential from a
longer-term mix trend back to credit versus cash agents followed by 6) increased
credit lines and revenue share splits from casinos. We also believe IKGH is in a
position to diversify its cash flow into higher stock multiple businesses, should
high ROI projects arise, given its financial strength
http://files.shareholder.com/downloads/ABEA-5LCMIQ/2951235367x0x724641/5EFDA4D2-28F6-4387-B0F8-CE667523AF6B/2014-02-10_IKGH_Sterne_Agee_Lowering_estimates_and_price_target_due_to_market_checks_citing_rising_agent_commissions.pdf
January US$1.29 billion win rate 3.97%
Iao Kun Group Holding Company Limited Announces Rolling Chip Turnover of US$1.36 Billion for December 2013
Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of December 2013 at the company’s VIP rooms in Macau was US$1.36 billion, up 5% year-over-year, compared to US$1.30 billion for the month of December 2012. Win rate for the month of December 2013 was 3.42%.
For 2013, IKGH’s Rolling Chip Turnover was US$17.04 billion (an average of $1.42 billion per month), down 7% year-over-year, compared to US$18.23 billion (an average of $1.52 billion per month) for 2012.
The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.
As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.
Casino revenue hits new annual record in 2013
Posted: 1/2/2014 1:02:51 PM
Macau raked in MOP360.7 billion (US$45.1 billion) in annual casino gaming revenues in 2013, a new record high, official figures released today by the Gaming Inspection and Coordination Bureau show.
This is an increase of 18.6 percent over 2012, the previous record.
Macau casinos took in MOP33.46 billion last month, an increase of 18.5 percent over the same period last year.
December was the second best month ever for the city’s gaming industry.
http://www.macaubusiness.com/news/casino-revenue-hits-new-annual-record-in-2013.html
Looks like I picked the wrong week to quit drinking.
http://en.wikiquote.org/wiki/Airplane!
Iao Kun Group Holding Company Limited Announces Rolling Chip Turnover of US$1.50 Billion for November 2013
Iao Kun Group Holding Co. Ltd. (NASDAQ:IKGH)
Intraday Stock Chart
Today : Tuesday 3 December 2013
Click Here for more Iao Kun Group Holding Co. Ltd. Charts.
Iao Kun Group Holding Company Limited (“IKGH”) (NASDAQ:IKGH), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of November 2013 at the company’s VIP rooms in Macau was US$1.50 billion, up 19% year-over-year, compared to US$1.26 billion for the month of November 2012. Win rate for the month of November 2013 was 1.64%.
For the first 11 months of 2013, IKGH’s Rolling Chip Turnover was US$15.69 billion (an average of $1.43 billion per month), down 7% year-over-year, compared to US$16.83 billion (an average of $1.53 billion per month) for the first 11 months of 2012.
Due to the low win rate in both October and November, the company experienced an operating loss for these two months. As a result, it is unlikely that the company will achieve its previously announced non-GAAP income guidance for the full year 2013.
The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.
As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.
Bought some shares today. Everyone else must be hung over still from Thanksgiving. Also like this note out today re Macau:
Iao Kun Group Holding Company Limited Provides Update on Hong Kong Listing
Business Wire
Iao Kun Group Holding Company Limited November 26, 2013 8:00 AM
HONG KONG--(BUSINESS WIRE)--
Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced that the company has engaged Rothschild (Hong Kong) Limited as the new sponsor for its dual listing application in Hong Kong.
The company will file a formal listing application to the Hong Kong Stock Exchange for the listing of and permission to deal in its securities as soon as practicable after completing the necessary procedures in connection with the preparation for its dual listing application in compliance with the latest rules and regulations of the Hong Kong Stock Exchange governing listing applications. The procedures include (but are not limited to) the sponsor completing an independent due diligence in connection with the company’s listing application, which includes interviewing the company’s management, customers and suppliers and reviewing material financial information of the company, and the company’s auditors completing the company’s audited financial statements for the track record period to comply with the listing requirements in Hong Kong.
Subject to any applicable regulatory requirements, the company will keep shareholders updated on the progress of its dual listing application. The company takes this opportunity to reiterate that it remains fully committed to the dual listing exercise and will continue to dedicate the requisite level of resources towards achieving this exercise.
8:00a Iao Kun Group Holding 3Q EPS 11c >IKGH (Dow Jones)
8:00a Iao Kun Group Holding 3Q Rev $61M >IKGH (Dow Jones)
8:00a Iao Kun Group Holding 3Q Net $6.93M >IKGH (Dow Jones)
Third Quarter 2013 Highlights
•Rolling Chip Turnover (a metric used by casinos to measure the aggregate amount of players’ bets and overall volume of VIP gaming room business transacted, which is further defined below) for the three months ended September 30, 2013 was $4.1 billion, an increase of 2.2% compared to $4.0 billion for the three months ended September 30, 2012.
•Net income, including the change in fair value of contingent consideration of $0.9 million related to the King’s Gaming, Bao Li Gaming and Oriental VIP Room acquisitions, was $6.9 million, or $0.11 per share (fully diluted), in the third quarter of 2013 compared to net income of $22.6 million, or $0.49 per share (fully diluted), in the same period of 2012.
•Non-GAAP income, which is operating income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King's Gaming, Bao Li Gaming and Oriental VIP Room, declined 32.4% to $10.1 million, or $0.16 per share (fully diluted), for the three months ended September 30, 2013 as compared to income of $14.9 million, or $0.33 per share (fully diluted), for the three months ended September 30, 2012.
•On September 20, 2013, the Company paid its 2013 Six Month Dividend of $0.08 per outstanding ordinary share.
For the three months ended September 30, 2013, IKGH recorded revenue of $61.0 million, a 12.8% increase from the same period of 2012. The increase in revenue was a result of a higher than normal win rate of 3.22%, the change in remuneration model from the fixed commission model of 1.25% on Rolling Chip Turnover to the revenue sharing model in September 2012, the acquisition of the profit rights derived by Bao Li Gaming in September 2012 and the Oriental VIP Room in June 2013, and an increase in net services revenue related to hotel and casino services charged to junket agents after the adjustment to commission rates.
The decrease in net income and Non-GAAP income for the three months ended September 30, 2013 was due primarily to higher commissions as a result of greater non-marker commission paid, the upward adjustment to commission rates as a result of the company compensating its junket agents for no longer providing complimentary hotel and casino services, increased market competition, and a smaller percentage of direct business. IKGH also incurred higher selling, general and administrative expenses for the three months ended September 30, 2013, including approximately $0,1 million of additional costs related to Hong Kong Listing expenses, acquisition costs, additional management fees paid as a result of the acquisition of Bao Li Gaming in September 2012 and the Oriental VIP Room in July 2013 and an increase in the number of employees due to direct employment of some employees from Pak Si and the acquisitions of Bao Li and the Oriental VIP Room.
“The VIP market in Macau continues to evolve and we are taking the necessary measures to best utilize our shareholders capital to grow our business while at the same time prudently managing risk,” said Mr. Man Pou Lam (Mr. Lam), Chairman of IKGH. “Our VIP room at Le Royal Arc Casino performed well for us in the third quarter and has helped us expand our presence in the Macau VIP gaming market. Further, we recently initiated a marketing campaign in Macau to augment our non-marker agent base, which we believe will assist us in increasing our Rolling Chip Turnover and market share while allowing us to remain vigilant with our shareholders capital. Our strategy remains unchanged – to increase our market share leading to growth in revenue and net income, and to create long-term shareholder value.”
Nine Month 2013 Highlights
•Rolling Chip Turnover for the nine months ended September 30, 2013 was $12.7 billion, a decrease of 10.1% compared to $14.1 billion for the nine months ended September 30, 2012.
•Net income, including the change in fair value of contingent consideration of $14.5 million related to the King’s Gaming, Bao Li Gaming and the Oriental VIP Room acquisitions, decreased 81.8% to $10.9 million, or $0.21 per share (fully diluted), in the nine months ended September 30, 2013 from $60.6 million, or $1.31 per share (fully diluted), in the same period of 2012.
•Non-GAAP income, which is operating income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King’s Gaming, Bao Li Gaming and the Oriental VIP Room declined 29.5% to $34.5 million, or $0.67 per share (fully diluted), for the nine months ended September 30, 2013 as compared to income of $49.0 million, or $1.07 per share (fully diluted), for the nine months ended September 30, 2012.
Outlook for 2013
For the first nine months of 2013, IKGH’s Rolling Chip Turnover was $12.7 billion (an average of $1.4 billion per month), down 10% year-over-year, compared to US$14.1 billion (an average of $1.6 billion per month) for the first nine months of 2012. Win rate for the first nine months of 2013 was 3.19%.
The Company maintains its 2013 Rolling Chip Turnover guidance range of US$16.5 billion to US$18 billion, and maintains its 2013 Non-GAAP income guidance range of US$46 million to US$52 million (which includes extraordinary expenses).
Announce Third Quarter 2013 Results on Wednesday, November 13, 2013
Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced that it will report its third quarter 2013 results before the market opens on Wednesday, November 13, 2013.
IKGH will conduct a conference call to discuss the financial results that day at 9:00AM EST/10:00PM Macau. To participate, please dial one of the following numbers at least 10 minutes prior to the scheduled start of the call:
1-888-455-2263 (United States/Canada)
10-800-714-0940 (North China)
10-800-140-0915 (South China)
800-968-149 (Hong Kong)
800-101-1739 (Singapore)
0800-404-7655 (United Kingdom)
1-719-457-2697 (Other International)
Interested parties may also access the live call on the Internet at www.aerlf.com (select Events and Presentations). Following its completion, a replay of the call can be accessed on the Internet at the above link or for one week by calling either 1-877-870-5176 (U.S. callers) or 1-858-384-5517 (International callers) and providing conference ID 8785389.
Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of October 2013 at the company’s VIP rooms in Macau was US$1.51 billion, up 3% year-over-year, compared to US$1.47 billion for the month of October 2012. Win rate for the month of October 2013 was 2.27%.
For the first ten months of 2013, IKGH’s Rolling Chip Turnover was US$14.19 billion (an average of $1.42 billion per month), down 9% year-over-year, compared to US$15.57 billion (an average of $1.56 billion per month) for the first ten months of 2012.
The increase in Rolling Chip Turnover was primarily attributable to the completion in June 2013 of the acquisition of 100% of the profit interest in the operations of the VIP gaming room at Level 1 of Le Royal Arc Casino, as well as a lower-than-normal win rate.
The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.
As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.
Definition of Rolling Chip Turnover
Rolling Chip Turnover is used by casinos to measure the volume of VIP business transacted and represents the aggregate amount of bets players make. Bets are wagered with “non-negotiable chips” and winning bets are paid out by casinos in so-called “cash” chips. “Non-negotiable chips” are specifically designed for VIP players to allow casinos to calculate the commission payable to VIP room gaming promoters. Commissions are paid based on the total amount of “non-negotiable chips” purchased by each player. VIP room gaming promoters therefore require the players to “roll,” from time to time, their “cash chips” into “non-negotiable” chips for further betting so that they may receive their commissions (hence the term “Rolling Chip Turnover”). Through the promoters, “non-negotiable chips” can be converted back into cash at any time. Betting using rolling chips, as opposed to using cash chips, is also used by the DICJ to distinguish between VIP table revenue and mass market table revenue.
Added AERL Yahoo message board to the ipage
http://finance.yahoo.com/mb/AERL/
IKGH is lowering its Rolling Chip Turnover guidance for 2013 to a range of $16.5 bln to $18 bln from its previous guidance of $19 bln, and is lowering its 2013 Non-GAAP income guidance to $46 mln to $52 mln (which includes extraordinary expenses) from its prior range of $60 mln to $75 mln.
Earlier this year, IKGH was encouraged by certain Mainland China macro-economic indicators, which caused the Company to expect a change in its agent credit policy for the second half of 2013. However, the Company did not see clear signs of a sustainable Mainland recovery, and thus remained prudent with shareholders' capital. As of October 1, IKGH has begun an aggressive marketing campaign in Macau to augment its non-marker agent base, which the Company believes can increase its Rolling Chip Turnover and market share, while allowing it to maintain a vigilant stance with shareholders' capital. IKGH continues to evaluate its credit policies on a monthly basis.
Iao Kun Group Holding Company Limited Announces Rolling Chip Turnover of US$1.12 Billion for September 2013
down 10% year-over-year, compared to US$1.25 billion for the month of September 2012. Win rate for the month of September 2013 was 4.24%.
September Rolling Chip Turnover was negatively impacted by an abnormally high win rate. Adjusted for a theoretical win rate of 3%, Rolling Chip Turnover would have been US$1.59 billion, or 27% above September 2012. September results were also partially impacted by Hurricane Usagi, which caused aviation and ferry terminal disruption and closures.
Casinos took in MOP28.96 billion in September
Posted: 10/3/2013 2:45:16 PM
Macau casinos recorded MOP28.96 billion (US$3.62 billion) in gross gaming revenue last month.
Official figures released today by the Gaming Inspection and Coordination Bureau show that this is a 21.4 percent increase over the same period last year.
So far this year, accumulated gross gaming revenue has reached MOP260.6 billion, a 16.7 percent increase over the first nine months of 2012.
AERL has been changed to IKGH
Iao Kun Group Holding Company Limited SEC Filings
IKGH
Banker’s death may delay junket operator’s listing
Posted: 9/23/2013 12:13:23 PM
Asia Entertainment and Resources Ltd’s listing in Hong Kong could be delayed until the first or second quarter of next year by the death of the lead banker, Sterne Agee says.
Analyst David Bain says the lead banker must verify the due diligence. If the information is incomplete or inaccurate, the listing may be delayed.
Also, if the listing application is not approved before the end of this year, the company will need to complete a full-year audit before listing, which may cause a delay.
http://www.macaubusiness.com/news/banker%E2%80%99s-death-may-delay-junket-operator%E2%80%99s-listing.html
Asia Entertainment & Resources Ltd. Provides Update on Hong Kong
Today : Friday 20 September 2013
Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ:AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced that due to unforeseen circumstances may have to delay its planned listing on the Hong Kong exchange.
The company was recently informed that the sponsor’s principal who is in charge of our Hong Kong listing application has unexpectedly passed away at home. Such unfortunate development was completely unanticipated and resulted in complications for the Hong Kong dual listing application which has otherwise been progressing according to plan. As a consequence of this event, a new sponsor’s principal would need to be appointed in order for the project to proceed. The role of sponsor’s principal in the sponsor’s team in charge of the project is critical as he or she is in charge of the overall project execution including directing the due diligence exercise to the satisfaction of Hong Kong regulatory authorities. Failure of such sponsor’s principal to fulfill his or her duty may lead to misleading statements or material omissions relating to a listing applicant being presented to investors which could result in potential criminal or civil liability for the sponsor firm and also personal liability for the sponsor’s principal. As such, the sponsor is currently reviewing the situation and is expected to provide, within a reasonable time, a replacement sponsor’s principal who would carry on all the relevant due diligence work relating to our listing application in order to be satisfied that our application is ready to be filed. Such developments may unavoidably create certain delays for our listing application timetable and the company is still assessing the potential impacts and we will keep the investors updated on further developments on the filing
month of August 2013 at the company’s VIP rooms in Macau was US$1.49 billion, up 1% year-over-year, compared to US$1.47 billion for the month of August 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 18% for August 2013. Win rate for the month of August 2013 was 2.65%.
Macau casinos recorded MOP30.7 billion (US$3.8 billion) in gross gaming revenue last month, up by 17.6 percent over the same period last year.
Official figures released today by the Gaming Inspection and Coordination Bureau show that this is the second best ever monthly figure for the industry.
So far this year, accumulated gross gaming revenue has reached MOP231,670 billion, a 16.2 percent increase over the first eight months of 2012.
Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, previously announced that its Board of Directors had authorized a regular dividend each year after the release of the Company's financial results for the six months ending June 30 (the “Six Month Dividend”). The Board of Directors reduced the Six Month Dividend from $0.12 per share to $0.08 per share beginning with the Six Month Dividend payable for 2013.
The Company today announced that the record date for the 2013 Six Month Dividend will be September 9, 2013, and that the payment date will be September 20, 2013.
Revenue 63,544,86 vs 58,531,067
earnings (.07) vs .48 due to special one time charges.
non-gap .20 vs .34
Guidance on revenue = 2nd half higher than first half.
Guidance for the year 60m to 75m
The guidance includes $2.8 million in additional expenses associated with the Hong Kong Listing and acquisition of the VIP gaming room at Le Royal Arc Casino in Macau, and does not take into consideration any possible future expansion or additional VIP gaming rooms.
AERL $4.02 reports Thursday before hours. They should finally show top line growth of 10%. Earnings consensus is .29 to last years .30
however one analyst Sterne Agee has .32 for Q2. So they could beat.
Sterne's revenue of 64.1m is lower than consensus of 65.7m
Then earnings/share are down hill for the next year with the share count surge on their recent offering. However revenue and operating profit should be picking up.
Sterne lowered its target to $9 from $16 a couple of days ago.
Analyst report posted
Asia Entertainment & Resources Ltd.
HK Listing soon; Top-line improvements now; Lowering ests
due to offering dilution; Lowering target price
Our Call
We maintain our Buy rating and adjust estimates following the completion
of AERL’s rights offering, which transforms a ~$60m shareholder loan into
permanent capital. Shareholder loans are not allowed under the Listing Rules of
the Stock Exchange of Hong Kong (“SEHK”), and AERL’s upcoming HK listing
should unlock equity value for investors.
Rights offering. Management/insiders (“management”) purchased ~$14.9m of
stock at $4.50 and $19.3m at $3.00. Investors purchased $29.3m of stock at $3.00.
We believe management’s “backstop,” purchasing 54% of the transaction at a
17% blended premium with a 24-month lock-up demonstrates their realization
of AERL’s undervalued equity ahead of its HK Listing, as well as its long-term
commitment and confidence in its business.
HK Listing. The Listing should be completed before the end of this year
(prospectus near finalized) and be by Introduction with no new shares offered.
A dual-listing decision was driven by overtures from Asian-based institutional
investors, combined with management/BOD frustration over its US market equity
multiple. AERL has engaged one of the largest i-banks in Mainland China to
structure its Listing roadshow throughout Asia, as well as a top 10 audit firm.
Business improvements started – more to come into HK listing. July rolling
chip turnover (“RCT”) was ~+15% YoY, AERL’s first double digit % YoY
increase since May CY12. July results compared to Macau market-wide RCT of ~
+12% YoY. We expect the full impact of AERL’s Le Royal Arc room acquisition
in August/September as it completes credit checks on new agents before extending
them significant cage capital. Management’s latest outlook for China macro is fluid
but with a positive bias and we expect it to more aggressively utilize its ~$40m in
idle capital in coming months.
Earnings adjustments and valuation. 1Q13 results, 19.5m additional shares
outstanding from the offering and new assumptions for higher agent commission
costs lowers our CY13/CY14 EPS to $0.91/$0.95 from $1.42/$1.93. We initiate
CY15 EPS at $1.14. Assumptions do not include any table/room expansion,
which we believe is likely. We believe estimate reductions are expected following
dilution from its right's transaction and 1Q13 agent commission increases.
We lower our target price to $9.50 from $16, 10x our new CY14 EPS. We consider
our new target as conservative, although it still represents a ~140% gain from
yesterday’s close. Shares trade for 4.1x CY14E EPS and 2.6x gross FCF per share.
Greater detail of all the above is continued on the following pages.
http://files.shareholder.com/downloads/ABEA-5LCMIQ/2570273672x0x685405/6FE23109-5A23-45E9-90CC-2A60E130ED2E/2013-08-16_AERL_Sterne_Agee_HK_Listing_soon_Top-line_improvements_now_Lowering_ests_due_to_offering_dilution_Lowering_target_price_anaylst.pdf
http://ir.aerlf.com/analystreports.cfm
Asia Entertainment & Resources Ltd. to Announce Second Quarter 2013 Results on Thursday, August 22, 2013
Much better improvement - Turnover (as defined below) for the month of July 2013 at the company’s VIP rooms in Macau was US$1.50 billion, up 15% year-over-year,
Casinos took in MOP29.5 billion in July
Posted: 8/1/2013 3:13:46 PM
Macau casinos recorded MOP29.5 billion (US$3.7 billion) in gross gaming revenue last month, up by 20 percent over the same period last year.
Official figures released today by the Gaming Inspection and Coordination Bureau show that this is the third best ever monthly figure for the industry.
So far this year, accumulated gross gaming revenue has reached MOP200.9 billion, a 15.9 percent increase over the first seven months of 2012.
Asia Entertainment & Resources Ltd. Announces Rolling Chip Turnover of US$1.33 Billion for June 2013
Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of June 2013 at the company’s VIP rooms in Macau was US$1.33 billion, down 3% year-over-year, compared to US$1.37 billion for the month of June 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 21% for June 2013. Win rate for the month of June 2013 was 3.09%.
For the first six months of 2013, AERL’s Rolling Chip Turnover was US$8.54 billion (an average of $1.42 billion per month), down 15% year-over-year, compared to US$10.07 billion (an average of $1.68 billion per month) for the first six months of 2012. Macau gross gaming revenue increased 15% for the first six months of 2013.
The decrease in Rolling Chip Turnover was attributable to the Company’s self-directed tightening of credit to agents due to its conservative view on the Chinese economy.
The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.
As of September 1, 2012, all AERL VIP rooms are on a revenue sharing remuneration model.
Macau’s June gaming results up by 21 pct: Official
Posted: 7/1/2013 1:01:32 PM Excellent! Very Good Good Fair Poor Rating: 100% (1 votes) Share on facebookShare on twitterMore Sharing Services
Macau’s casino gross gaming revenue for June stood at MOP28.3 billion (US$3.5 billion).
The figure was up by 21.1 percent year-on-year, data unveiled today by the Gaming Inspection and Coordination Bureau shows.
This is the fourth month in a row that the city’s casino industry posts results above the MOP28-billion mark.
In the first half of 2013, the city’s casino industry recorded gross gaming revenue of MOP171.4 billion, up by 15.3 percent in comparison with the same period last year.
The 6/28 press release indicating the deal closing for Le Royal Arc Casino with 6 tables. The PR says they have 40 tables now.
I count 39. The most recent Analyst report 5/21 from Sterne says 39 as well (with this closing)
PR - Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced the conclusion of its rights offering (the “Rights Offering”) and standby purchase of shares not sold in the Rights Offering. AERL will issue a total of 19,510,550 ordinary shares and raised $63.5 million in gross proceeds from the Rights Offering and the standby purchase. This includes 9,767,550 shares issued to holders upon exercise of their subscription rights and 9,743,000 shares issued to the standby purchasers pursuant to the terms of a standby purchase agreement.
AERL anticipates using the net proceeds of the Rights Offering, which is approximately $61.4 million following the deduction of offering expenses and costs related to the transaction, to repay outstanding indebtedness owed to certain of AERL’s shareholders. These shareholders are also standby purchasers.
In theory, excess demand for AERL stock on the HK exchange would have a positive spillover effect on AERL stock trading on the Nasdaq. That is, speculators could arbitrage any difference in valuation and buy low on the NAS and sell high on the HK.
The key question is will the valuations be any better in HK?
Look at a company like Neptune, which is a VIP promoter like AERL and currently trades on the HK exchange:
http://www.reuters.com/finance/stocks/overview?symbol=0070.HK
It has a trailing PE of 2.5x, and is on track to earn about 0.09 for the current FY13. It trades at 0.18
AERL would trade well under 3 if it got a similar forward multiple. So why would/should AERL trade at a premium to Neptune?
abh3vt...you've always been dialed in with this company since the days even prior to previous warrant expiration & I appreciate you posting your thoughts. Do you think an earnings multiple appreciation in HK due to the appetite from those investors could be a catalyst?
I would expect a bit different sentiment from what we've seen from US investors.
AERL now trading below 3.50, which is where I expected it to trade after the market began to understand the dilution occurring here. Getting closer to a "buy" but anyone buying it down here will still have a long wait for the catalysts of eps growth.
Always seems to be "wait 'till next year" with this company.
PR - Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that it has completed due diligence in connection with its proposed acquisition of all of the outstanding interests and operations of the VIP gaming room at Level 1 of Le Royal Arc Casino located in NAPE, Macau. Subject to satisfaction of customary closing conditions, AERL expects to close the transaction by June 30, 2013. Following this transaction, AERL will be able to expand its existing agents network. Upon the closing of the acquisition, AERL will have 40 tables in five VIP rooms
Market under the symbol “AERLR”. AERL expects the rights can be traded on the Nasdaq Global Market commencing on June 6, 2013 until 4:00 p.m., New York City time, on June 21, 2013, unless the rights offering is extended. AERL intends to use the net proceeds of the rights offering to pay off outstanding indebtedness owed to certain of its shareholders. Sterne, Agee & Leach, Inc. has been appointed dealer manager for the rights offering.
Followers
|
19
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
627
|
Created
|
02/11/10
|
Type
|
Free
|
Moderators |
name and ticker changed Wed, Oct 2, 2013
Company Website
http://ir.ikghcl.com/index.cfm
Previously called Asia Entertainment & Resources Ltd. AERL
AERL -Previously known as CS China Acquisition Corp., acquired AGRL on February 2, 2010. AGRL is an investment holding company of subsidiaries and related promoter companies, operates
as a VIP gaming room promoter in Macau, China, the largest gaming market in the world. The company currently promotes VIP gaming rooms at four Macau casinos:
Galaxy Star World Casino (Downtown, 12 tables),
Galaxy Resort Macau (Cotai, 12 tables)
City of Dreams Macau, a Melco Crown property (Cotai, 5 tables)
Sands Cotai Central,three tables plus a private room for a total of (4 tables).
Le Royal Arc Casino located in NAPE, Downtown Macau (6 tables)
Crown Perth Casino in Perth, Australia
Crown Melbourne Casino Complex in Melbourne, Australia
Analyst Coverage
12/2/2014 | Stifel Nicolaus | Lower Price Target | Buy | $4.00 -> $3.00 |
Monthly Gross Revenue from Games of Fortune (for all in Macau)
http://www.dicj.gov.mo/web/en/information/DadosEstat_mensal/index.html
News source
http://www.macaubusiness.com/gaming/
News Source (general news in English)
http://www.macaudailytimes.com.mo/
News Search
https://www.google.com/search?hl=en&gl=us&tbm=nws&btnmeta_news_search=1&q=Macau+VIP&oq=Macau+VIP&aq=f&aqi=&aql=&gs_sm=s&gs_upl=0l0l0l1782l0l0l0l0l0l0l0l0ll0l0
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |