GAMING SECTOR SURVEY

(1)

Principal Indicators Total Receipts and Total Expenditure

Enterprises (No.) Full-time Employees (No.)

Total Expenditure Gross Value Added

Gross Fixed Capital Formation Gross Surplus

Gross Surplus Ratio (%)

Gross Surplus-Expenditure Ratio (%)

Receipts Million MOP

• Total Receipts (Including Interests)

Receipts from Gaming &

Related Services

Expenditure Million MOP

Interests Total Expenditure

Purchase of Goods, Commission Paid & Customer Rebate

• Operating Expenses

Compensation of Employees Non-operating Expenses

Depreciation

Interest Paid 1 251

1.8 2 706

22 370 4 065 31 379

32.7

th

3 735

-6.7

31 949 Total expenditure decreased by 6.7% year-on-year to

MOP117.79 billion; expenditure on Purchase of Goods, Commission Paid & Customer Rebate (MOP56.43 billion) reduced by 17.5%, with its share in total expenditure falling by 6.3 percentage points from 54.2% in 2018 to 47.9%.

Operating Expenses rose by 1.8% year-on-year to MOP31.95 billion (27.1% of total expenditure), and Compensation of Employees inched up by 0.7% to MOP 22.53 billion (19.1%).

Non-operating Expenses (including depreciation and interest paid) expanded by 69.3% year-on-year to MOP6.88 billion, of which interest paid soared by 151.4% to MOP3.15 billion owing to increased borrowing costs for enterprises.

0.7 2 814

56 427

6 881 3 146 22 532

Structure of Total Expenditure

69.3 151.4

GAMING SECTOR SURVEY

2019

204 380 6 804 182 010 59.8 149.0 58 225

304 712 126 251 -

Total receipts of the 9 enterprises that were engaged in gaming activities amounted to MOP296.09 billion, down by 2.8% year-on-year. Receipts from Gaming & Related Services decreased by 3.6% year-on-year to MOP293.38 billion.

Total expenditure dropped by 6.7% year-on-year to MOP117.79 billion, with expenditure on Purchase of Goods, Commission Paid & Customer Rebate constituting 47.9% of the total.

Gross Value Added that measures the sectoral contribution to the economy totalled MOP205.06 billion, up slightly by 0.3% year-on-year. Gross Fixed Capital Formation of the sector declined by 55.4% year-on-year to MOP3.03 billion.

9 10 -1

-

2018^r

526

Change (%) -2.8 -3.6

-3.5 -8.2 414.9 Change (%)

304 186

1.7 -2.8 -6.7 0.3 -55.4 0.3 2.4 p.p.

15.6 p.p.

2018^r

2019 2018^r

126 251 117 789

57 246 Total Receipts (Million MOP)

Currency Exchange

296 085 117 789

2019

Of which:

-17.5 293 380

164.6 205 056 3 032 182 524 62.2

296 085

77 84 Change (%)

68 436

Gaming receipts fell by 3.5% year-on-year to MOP292.34 billion;

however, interest receipts (MOP2.71 billion) leapt by 414.9% on account of an increase in interest received from deposits and loans of the enterprises.

304 712

292 344 302 856 Gaming

統計暨普查局

Government of Macao Special Administrative Region Statistics and Census Service

304.7 296.1

126.3 117.8 0

100 200 300 400

2015 2016 2017 2018 2019

Billion MOP

Total Receipts Total Expenditure

‐6.7%

‐2.8%

r

Purchase of Goods, Commission

Paid &

Customer Rebate 47.9%

Operating Expenses 27.1%

Compensation of Employees

19.1%

Non-operating Expenses 5.9%

2019 54.2%

24.9%

17.7%

3.2%

2018^r

(2)

Operating Expenses Million MOP

Total Of which:

Complimentary Goods &

Services Provided to Customers Management Services &

Contractual Services Market Research & Publicity Consumables

Rent of Establishment Rents of Machinery,

Equipment & Vehicles Water & Electricity Charges Maintenance & Repairs

•

Compensation of Employees Million MOP

Total

Remuneration in Cash Contributions to Pension Funds,

Provident Funds & Social Security Payments in kind

Other Benefits

•

Payments Made Abroad

Total ^•

Operating Expenses Of which:

Management Services &

Contractual Services Market Research & Publicity Consumables

Rent of Establishment

Complimentary Ferry & Air Tickets Maintenance & Repairs

Purchase of Goods, Commission Paid & Customer Rebate Interest Paid

2︱Gaming Sector Survey

6 733

74 97 -23.5

2019 Payments made abroad by enterprises amounted to MOP6.73 billion in 2019, a boost of 66.0% year-on-year. Interest paid rocketed by 712.0% year-on-year to MOP3.08 billion, driven by an increase in foreign borrowing. Operating Expenses (MOP1.89 billion) went up by 0.4% year-on-year, whereas expenditure on Purchase of Goods, Commission Paid & Customer Rebate (MOP1.77 billion) dropped by 1.6%.

Regarding operating expenses made abroad, MOP537 million was incurred on management services & contractual services, a decrease of 3.4% year-on-year. On the other hand, expenditure on market research & publicity (MOP333 million) and consumables (MOP205 million) rose by 5.4% and 12.5% respectively.

537 556 -3.4

94 4 056

2019

There were 58,225 full-time employees, an increase of 1.7% (+979) year-on-year. Compensation of Employees rose marginally by 0.7%

year-on-year to MOP22.53 billion.

Within Compensation of Employees, remuneration in cash held steady year-on-year at MOP20.59 billion (91.4% of total);

contributions to pension funds, provident funds & social security grew by 14.2%, while payments in kind went down by 1.1%.

0.7 Change (%)

Structure of Compensation of Employees

14.2 672

20 592

28

-1.1 680

78.5 20 587

22 370

51 22 532 1 221

1 798 316 182 75

-17.7 8.1

-5.2

503 473 6.2

Million MOP

-20.9 102

12.5 Change (%) 2018^r

2019

379 400

Structure of Operating Expenses 31 949

2019 2018^r

-0.9

5.6

498 525

917 925

1 189

3.5

1 191

16 888 16 315

0.2 4 304

Change (%) 31 379 1.8

5 906 3 543

6 384

In terms of Operating Expenses, MOP16.89 billion was incurred on complimentary goods & services provided to customers, up by 3.5% year-on-year; expenditure on complimentary hotel accommodation grew by 7.6% to MOP9.86 billion.

Expenditure on management services & contractual services (such as security and cleaning services) increased by 8.1% year-on-year to MOP6.38 billion, whereas that on market research & publicity reduced by 17.7% to MOP3.54 billion.

0^#

66.0

333

379 712.0

0.4

-0.1

1 770 205 102

3 076

-1.6 5.4

1 070 2018^r

1 887 1 879

Remuneration in Cash

91.4%

Payments in kind 3.0%

Contributions to Pension Funds, Provident Funds & Social Security

5.4%

Other Benefits 0.2%

Ferry & Air Tickets 2.5%

Food & Beverage 14.2%

Hotel Accommodation

30.9%

Other goods &

Services 5.3%

Complimentary Goods &

Services Provided to Customers

52.9%

Others 5.1%

Rents of Machinery, Equipment & Vehicles

1.6%

Consumables 3.7%

Maintenance & Repairs 1.2%

Market Research &

Publicity 11.1%

Management Services &

Contractual Services 20.0%

Rent of Establishment 2.9%

Water & Electricity Charges

1.5%

(3)

•

Gross Value Added and

Average Value Added per Full-time Employee

•

Gross Fixed Capital Formation

•

Structure of Gross Fixed Capital Formation

• Gross Fixed Capital Formation of buildings & other constructions (MOP1.54 billion), electronic gaming equipment (MOP747 million) and vehicles, machinery & other equipment (MOP402 million) declined by 51.9%, 29.0% and 79.7% respectively year-on-year.

In terms of the structure of Gross Fixed Capital Formation, the shares of buildings & other constructions (50.8% of total) and electronic gaming equipment (24.6%) expanded by 3.7 percentage points and 9.1 percentage points respectively year-on-year, whereas the proportion of vehicles, machinery & other equipment (13.2%) dropped by 15.9 percentage points.

Gross Fixed Capital Formation of the sector reduced by 55.4%

year-on-year to MOP3.03 billion in 2019, as the large-scale tourism and gaming facilities of some enterprises were completed in 2018.

Gross Value Added that measures the sectoral contribution to the economy edged up by 0.3% year-on-year to MOP205.06 billion.

With the increase in Gross Value Added (+0.3%) being smaller than that in full-time employees (+1.7%), Average Value Added per Full- time Employee dropped by 1.4% year-on-year to MOP3.52 million.

Gross Surplus Ratio and Gross Surplus-Expenditure Ratio

As enterprises cut back on expenditure, Gross Surplus of the sector inched up by 0.3% year-on-year to MOP182.52 billion in 2019.

Gross Surplus Ratio rose by 2.4 percentage points year-on-year to 62.2%, reflecting an improvement in the capability of the sector to convert receipts into gross surplus. Moreover, Gross Surplus- Expenditure Ratio that measures the cost-effectiveness of the sector surged by 15.6 percentage points to 164.6%. Both ratios set new record highs again since the launch of the survey.

57.9 58.7 58.9 59.8 62.2

137.3 142.0 143.2 149.0 164.6

0 50 100 150 200

2015 2016 2017 2018 2019

Billion MOP

Gross Surplus Gross Surplus Ratio

Gross Surplus-Expenditure Ratio

%

r

204.4 3.6 205.1 3.5

0 1.0 2.0 3.0 4.0

0 50 100 150 200 250

2015 2016 2017 2018 2019

Million MOP Billion MOP

Gross Value Added

Average Value Added per Full-time Employee r

0 2 000 4 000 6 000 8 000

2015 2016 2017 2018 2019

Million MOP

Buildings &

Other Constructions

Vehicles, Machinery &

Other Equipment

Electronic Gaming Equipment

Computer Software Other

Fixed Assets 6 804

3 032

Buildings &

Other Constructions

50.8%

(MOP1 540 million) Vehicles,

Machinery &

Other Equipment 13.2%

(MOP402 million) Electronic

Gaming Equipment

24.6%

(MOP747 million) Computer Software

(MOP203 million)6.7%

Other Fixed Assets 4.7%

(MOP141 million)

2019 47.1%

29.1%

15.5%

4.9% 3.4%

2018

(4)

Business Performance of Enterprises Engaging in Games of Chance

Principal Indicators of Games of Chance

• Enterprises (No.)

Full-time Employees (No.) Total Receipts (Million MOP)

Total Expenditure Of which:

Purchase of Goods, Commission Paid & Customer Rebate Operating Expenses Compensation of Employees Gross Value Added

•

No.

• Casinos

Gaming Tables Slot Machines

Source of data: Gaming Inspection and Coordination Bureau

Note: Include 2 casinos which suspended their operations in 2019 and 2018.

Historical Data 　

Enterprises (No.)

Receipts from Gaming & Related Services (Million MOP) Purchase of Goods, Commission Paid & Customer Rebate Operating Expenses

Compensation of Employees Gross Value Added

182 010 59.8 134 803

58.3

132 446 206 277

137.3 142.0 149.0

58.9 143.2 157 737 58.7

203 683

According to the information from the Gaming Inspection and Coordination Bureau, number of casinos stayed at 41 (including 2 casinos that have suspended operations) as at the end of 2019.

Number of gaming tables totalled 6,739, a growth of 151 (+2.3%) year-on-year; meanwhile, number of slot machines increased by 950 (+5.9%) to 17,009.

21 334 22 370

204 380 Of which: Gaming Receipts

179 071 949

23 940 27 935

225 695

10 10

267 862 60 856

10 49 479

304 186 -17.5

59.9 182 222

62.3

6 757 125 345

-2.8

0.7 -6.7

There were 56,968 full-time employees engaged in the 6 enterprises that were granted the concession to operate games of chance, constituting 97.8% of the total number of full-time employees of the sector.

Gaming receipts of the 6 enterprises reduced by 3.4% year-on-year to MOP291.45 billion in 2019, taking up 99.7% of the gaming receipts of the sector.

Total expenditure of the 6 gaming enterprises slid by 6.7% year-on- year to MOP116.97 billion, with expenditure on Purchase of Goods, Commission Paid & Customer Rebate falling by 17.5% to MOP56.38 billion (48.2% of total).

6 295 040 2019

56 968 56 071 1.6

2018^r Change (%) -

-3.4 301 799

291 452

303 487 6

2017 10

149.7

2 645

225 247 152 306

Gross Surplus of the 6 gaming enterprises inched up by 0.3% year- on-year to MOP182.22 billion. Gross Surplus Ratio stood at 62.3%, slightly higher than that of the sector (62.2%). Meanwhile, Gross Surplus-Expenditure Ratio of these enterprises was 165.4%, which surpassed the overall ratio of the sector (164.6%) by 0.8 percentage points year-on-year, indicating that these enterprises were more cost-effective compared to the sector as a whole.

2014

24 551

Enterprises Engaging in Games of Chance

165.4 Gross Surplus-Expenditure Ratios of Gaming Sector and

2016 31 583 30 923

0.3 2.4 p.p.

116 967

2 971

68 384 56 383

181 631

2.1 22 204 22 052

41 6 588 16 059

2019 2018 Difference

- 151 950 6 739

140.0

232 951

57.9 2015 41

6 804 2 751

154 736 19 933

68 436 2018^r

31 379

18 970 19 860

Number of Casinos, Gaming Tables and Slot Machines at End-period

0.4 204 426

103 836 17 009

-56.0

15.7 p.p.

7 429 21 244

56 992 10 353 637

137.3 142.0 143.2

149.0

164.6

138.2 143.0 143.9

149.7

165.4

130 140 150 160 170

2015 2016 2017 2018 2019

Gaming Sector Enterprises Engaging in Games of Chance

%

r

(5)

Coverage

Glossary

Symbols and abbreviations

- Absolute value equals zero r Revised figures

p.p. Percentage point % Percentage

MOP Macao Pataca 0^# Magnitude less than half of the unit employed

No. Number

For additional information:

Gross Fixed Capital Formation: Equals the value of total acquisitions of fixed assets, less the proceeds from sales of fixed assets. Fixed assets include buildings, machinery, transport and other equipment, computer software and other durable goods with a usable span of one year or more, as well as major repairs, renovations and extensions made to the existing assets.

Gross Surplus: Equals Receipts from Gaming & Related Services, plus Changes in Inventories, minus expenditure (including Compensation of Employees, Operating Expenses, Purchase of Goods, Commission Paid & Customer Rebate).

Gross Surplus Ratio: Gross Surplus divided by Receipts from Gaming & Related Services and multiplied by 100%. The higher the ratio, the more effective a sector is at converting receipts into gross surplus.

Total Expenditure: Includes Compensation of Employees, Operating Expenses, Purchase of Goods, Commission Paid & Customer Rebate, and Non- operating Expenses such as interest paid and depreciation.

Purchase of Goods, Commission Paid & Customer Rebate: Include the cost of goods purchased for sale by the enterprise, net of any discounts.

Commission refers to service payments to agents or junket promoters who are not employees of the enterprise. Customer Rebate is the net value of rebate to customers, in the form of cash and/or casino chips.

Coverage of the survey comprises enterprises operating in gaming activities in Macao during the reference year. The list of enterprises is originated from the Statistics and Census Service and supplemented with information from the Financial Services Bureau.

Enterprise: An enterprise is a legal entity that has decision-making autonomy of its principal function and resource usage, and engages in economic activities in one or more locations. If one or more institutional units co-exist in a single location but each has its own autonomy in making decisions, each of them constitutes an enterprise.

Full-time Employees: Employees who work no less than the number of normal working hours established for the relevant position/post.

Receipts from Gaming & Related Services: Include receipts from bets placed by customers in gaming activities, food and beverage, currency exchange and other receipts (including gratuities, rents, cultural and entertainment activities, etc.); however, non-operating receipts such as interest receipts and insurance claims are excluded.

Gross Surplus-Expenditure Ratio: Gross Surplus divided by expenditure (including Compensation of Employees, Operating Expenses, Purchase of Goods, Commission Paid & Customer Rebate) and multiplied by 100%. The higher the ratio, the more cost-effective an enterprise is.

Average Value Added per Full-time Employee: Gross Value Added divided by number of full-time employees. An indicator that measures the sectoral contribution of each employee to the economy.

Games of Chance: Gaming activities including Baccarat, Slot Machines and Cussec.

Operating Expenses: Include expenses on consumables, water supply, fuel, electricity charges, maintenance and repairs, rent of establishment, rents of machinery and equipment, rental of vehicles (including rental of chauffeur-driven vehicles), premiums on non-labour insurance, bank charges, postal and courier, telecommunication, market research & publicity, business travels, computer & information, uniform, complimentary goods and services provided to customers (including hotel accommodation, food & beverage, ferry & air tickets and other complementary goods & services), professional & consulting services, management services, contractual services (including security and cleaning services) and other operating expenses.

Compensation of Employees: The sum of remuneration in cash, payments in kind, and other benefits paid to employees.

Gross Value Added: Equals Receipts from Gaming & Related Services plus Changes in Inventories, minus Purchases of Goods, Commission Paid &

Customer Rebate and Operating Expenses.