After a 26-month slump in GGR, Macau gaming market has recovered from the third quarter of 2016 as evident by the positive growth in GGR since then. However, 2017 remained a challenging year as satellite casinos in Macau experienced sluggish recovery. Nevertheless, our management team has successfully executed the business strategies and the Group has achieved solid results on the back of such a challenging and competitive operating environment in Macau.
As for our casino management businesses, the GGR derived from the casinos under the Group’s management maintained a stable growth in 2017. Total GGR generated by Casino Kam Pek Paradise for 2017 amounted to HK$1,249.7 million, representing an increase of 1.0% over that of HK$1,237.2 million for 2016. Total GGR generated by Casino Waldo for 2017 was HK$513.1 million, representing an increase of 6.0% over that of HK$484.0 million for 2016.
Recently, DICJ released new requirements on the Technical Standards with effective date of 1 January 2018. The Technical Standards set out objective standards and requirements for the DETG machines, which have been under rapid growth in recent years and playing an important role in the development of gaming industry. As one of the leading gaming equipment and systems suppliers in Macau specialising in developing table game automation and innovative technologies to the Macau and overseas gaming markets, the Group is technically competent and is happy to provide support such as testing, technical upgrading etc. to casinos currently equipped with DETG machines and assist them in meeting the requirements of the Technical Standards. This of course will bring us business opportunities as well. Going forward, the Group will continue to develop and launch new DETG machines and other electronic gaming equipment and systems such as slot machines, casino management system etc. to provide casinos with more diversified and upgraded products.
Macau continues to prove itself as the one of the world’s leading hubs appealing vibrant and dynamic tourism, both for leisure as well as business purposes. In 2017, visitation to Macau grew modestly by 5.4% to 32.6 million and the macro economy performed well in general. During the year under review, Macau generated GGR of MOP265.7 billion, representing a 19.1% increase over that of 2016. We believe and look forward to the sooner completion of infrastructure projects designed to enable easier travel to and from and within Macau, such as the Hong Kong-Zhuhai-Macao Bridge, the Macau Light Rapid Transit, together with the further improvement of border gate capacity on the Macau Peninsula, all of which will benefit Macau gaming industry in the long run, especially to the segment of mass market in which the Group principally focuses on.
Last but not the least, on behalf of the Board, I would like to thank the Shareholders, our banks, customers and other business partners for their continuous support. Most importantly, I would also like to take this opportunity to thank our executives and staff for their dedication and professionalism.
Chairman and Managing Director
Hong Kong, 26 March 2018