Annual Report 2019

ANNUAL REPORT 2019 53 MANAGEMENT DISCUSSION AND ANALYSIS TWC upholds a high standard of regulatory compliance and corporate governance practice, having been listed on the over-the-counter market in the United States until being privatized and delisted. It will not only bring to the Group recurring earnings and cash flow contribution from its hospitality business, but will also serve as a platform for the Group to pursue expansion in the gaming space. The following sets forth certain operating data of TWC’s casinos for the 11 months ended 31 March 2019: As at 31 March 2019 Number of slot machines 513 Number of tables 62 11 months ended 31 March 2019 Table game revenue (i) ( HK$ million ) 51 Slots revenue (i) ( HK$ million ) 137 Average table game win % (ii) 17.2% Average slot win per machine per day (HK$) 1,219 (i) Net of gaming tax. (ii) Table game win % is defined as total win on the gaming table (being total bets received less payouts made) divided by total amount of cash and non-negotiable chips deposited on the gaming table. With TWC’s gaming operations gradually recovering from the impact of the change in gaming regulations in the Czech Republic which became fully effective on 1 January 2018, and with the synergies created between the Group and TWC, including, for instance, cross-selling opportunities, TWC’s gaming operations is expected to deliver decent returns to the Group. Australia In March 2018, the Group entered into a strategic alliance agreement with The Star and CTF and took a 4.99% equity stake in The Star, one of the two major casino operators in Australia which has a dominant position in Sydney, Gold Coast and Brisbane. Strategic benefits to the Group from this investment and the strategic alliance agreement are: (i) strengthening the Group’s already established relationship with The Star; (ii) forging partnership with The Star for potential mixed use property projects, and adding to the Group’s development pipeline in Australia; (iii) allowing the Group to increase its exposure to QWB Project and benefit from The Star’s future growth; The Star, Sydney