Emperor Group adjusts customer segmentation as revenue declines

Emperor Group revenue declines
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Following a 7.8 percent decline in revenue to $176.6m for the 12 months to 31 March 2019, Emperor Group has announced it will increase its focus on the premium mass market.


The Macau casino firm – which operates the Grand Emperor Hotel and Inn Hotel in Taipa – also saw profit decline 6.6 percent to $45m, prompting a reassessment of its target player segment.

“In view of the changing tourism landscape in Macau, the Group will reinforce its customer segmentation in order to expand its share of the premium mass market, in which the Group sees long-term potential.,” said a statement from Emperor.

“In this regard, the Group will increase its competitiveness by offering differentiated, premium services to the targeted segments. The Group endeavors to elevate itself in order to solidify its market presence as opportunities emerge and is committed to contributing to the development of Macau into a global gaming hub.”

The announcement comes after the group’s gaming division, Emperor Entertainment Hotel Ltd, reported a 13.8 percent decline in VIP turnover to $2.4bn resulting in a 12.5 percent fall in segment revenue to $54.9m, contributing 31.1 percent of group revenue.

Though mass table revenue fell 8.2 percent to $152.2m during the 12 month period – generating 48.1 percent of total revenue – slot machine revenue across the operator’s estate increased by a small percentage to $5.4m.

With mass market figures providing almost half of total revenue, as well as a small glimmer of hope in the form of small-scale growth, it’s unsurprising to see Emperor seeking to adjust customer segmentation toward mass gaming.

The firm added it is “poised to benefit from the rising affluence in mainland China” following the recent completion of the Hong Kong-Zhuhai-Macau Bridge.

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