The Grand Lisboa is also in the news due to SJM’s decision to transfer 30 low-yielding tables from the underperforming Oceanus casino to its flagship property. Union Gaming Research analyst Grant Govertsen suggested the added tables – which will be split roughly 40/60 between VIP and mass market segments – could boost the Grand Lisboa’s revenue by HK $1.1b ($141.7m) and earnings by HK $150m ($19.3m) in the second half of 2013. Macau’s tight control over its gaming tables has led operators like SJM to occasionally shift tables between its licensed properties, which can have significant impact on VIP gaming room promoters.
China Star Entertainment Ltd., the Hong Kong-listed firm with interests ranging from feature film production to Macau casino operations, also runs a VIP gaming room at the Grand Lisboa. China Star just announced its 2012 financial results, which showed a profit of HK $94.5m (US $12.2m), a sharp turnaround from 2011’s HK $632.7m loss. “Keen competition” for high-rollers resulted in gaming revenue from the Grand Lisboa room falling 77.4% to just HK $15.5m ($2m) in 2012. China Star also owns Macau’s Lan Kwai Fong hotel-casino, where VIP action fell 40% to HK $184.3m ($23.7m). However, having “spent resources” to boost the more profitable mass-market gambling segment, Lan Kwai Fong’s mass market revenue rose 45.7% to HK $798.8m ($102.9m) and the hotel’s overall profits rose 80% to HK $192.8m ($24.8m).