MACAU, S.A.R. - VIP gaming room operator, Asia Entertainment and Resources Ltd. (AERL), has struck gold after seeing its revenue more than double in the first nine months of the year.
AERL reported that as of September 30, 2010, its unaudited financial results saw the company profit US$ 83.9 million, up 114% over the same period last year which was pegged at US$39.2 million.
It als reported that its net income (including pre-acquisition profit) grew to US$26.7 million from US$9.8 million last year.
The company, which operates through subsidiaries and related promoter companies as a VIP room gaming promoter said that the increase was fueled by a shift towards a more commission-based business and the overall low win rate during the third quarter.
AERL Chairman Lam Man Pou said:
"The third quarter of 2010 was our second consecutive quarter of triple-digit revenue growth, primarily due to our ability to increase the rolling chip turnover for our two VIP gaming rooms in Macau."
A rolling chip turnover (RCT) is how casinos measure the volume of VIP business transacted and represents the amount of bets players make.
AERL announced that its RCT for the end of September was at US$6.7 billion, up 105% over the same period last year.
Lam further noted:
"We believe the absolute growth of rolling chip turnover will continue through the remainder of the year, however, monthly year-on-year improvement for the last three months of 2010 could be moderated when measured against the highly successful months during the last quarter of 2009."
Comparing the third quarter's performance over the previous two this year, Lam however said that overall performance for the quarter was below expectations.
Lam pointed to the low win rate at the Iao Kun VIP Room at the MGM Grand Hotel and Casino, and the higher-than-average commission it paid to non-marker agents in July as factors for not meeting expected results.
AERL also recently announced that it was due to acquire another VIP gaming promoter via a non-binding memorandum of understanding, this time for a VIP room at the Venetian Macau located on Cotai. Both of AERL's current VIP rooms are in Macau -- one at MGM and the other at StarWorld Hotel and Casino.
