Asia Entertainment & Resources Ltd. Announces Rolling Chip Turnover Of US$1.471 Billion For August 2012
Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of August 2012 at the company’s three VIP rooms in Macau was US$1.471 billion, down 19.3% year-over-year, compared to US$1.822 billion for the month of August 2011, and up 12.3% compared to US$1.310 billion for the month of July 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 5.5% for August 2012.
For the first eight months of 2012, AERL’s Rolling Chip Turnover was US$12.848 billion (an average of $1.606 billion per month), up 3.3% year-over-year, compared to US$12.440 billion (an average of $1.555 billion per month) for the first eight months of 2011. Overall, Macau gross gaming revenue increased 15.2% for the first eight months of 2012, while Macau VIP revenue growth for the month of August 2012 is believed to be negative versus the same period in 2011.
The decline in Rolling Chip Turnover was attributable to the Company’s self-directed tightening of credit to agents due to the slowing economy in China, as well as a higher-than-expected win rate of 3.19%. At a normalized win rate between 2.85% and 3.00%, AERL’s Rolling Chip Turnover for August 2012 could have been between US$1.649 billion and US$1.566 billion.
“Our August 2012 results were affected by our internal decision to tighten credit to agents, as the slowdown in growth in China has caused us to be more prudent in extending credit,” said AERL Chairman Lam. “With our new revenue sharing model now in place, along with further policy easing by the Chinese government, we expect to return to our normal credit policy in the near future, which should lead to higher Rolling Chip Turnover during the rest of the year.”
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