Operator News

Singapore – Singapore’s high rollers drive Sands second quarter

By Phil - 27 July 2017

Marina Bay Sands drove a huge revenue improvement for Las Vegas Sands in the second quarter with the Singapore casino’s VIP segment the top performer.

Marina Bay Sands’ revenue increased by 17.7 per cent to $836m with GGR at the increasing by 23.9 per cent to $690m.

Adjusted Property EBITDA increased 37.8 per cent to$492m, close to its best ever month.
Sheldon Adelson, chairman and chief executive officer, said: “Marina Bay Sands delivered a record quarter with adjusted property EBITDA increasing 37.8 per cent to reach a record $492m. Marina Bay Sands’ innovative programming, consistent mass gaming play, strength in non-gaming revenues and higher hold in VIP play compared to the same quarter last year all contributed to the outstanding performance. The quarter was marked by particularly strong performance in the VIP gaming segment where rolling volumes increased by 29 per cent. We are pleased to have established Marina Bay Sands as a reference site for other cities and countries that are considering harnessing the economic power and direct contributions to tourism, employment and GDP growth of our unique convention-based Integrated Resort business model.”

Overall global net revenue for the quarter increased 18.6 per cent to $3.14bn with net income increasing 61.9 per cent to $638m.

Another key driver was the mass market in Macau where The Parisian grew its EBITDA by 29 per cent sequentially to US$106m with solid sequential growth in both gaming and non-gaming revenues.

“Not only has Parisian been successful as a standalone property, The Parisian also benefits our entire Cotai portfolio,” Mr. Adelson explained. “The Plaza/Four Seasons property in particular, has experienced an uplift in visitation and business volumes since The Parisian opened and the bridge between Four Seasons and Parisian was completed. Every gaming segment at Plaza experienced strong revenue growth during the quarter and Four Seasons’ retail sales grew by seven per cent over the prior year, despite the increase in the supply of luxury retail in Macao. The Parisian has firmly established itself as a ‘must-see’ destination for visitors to the Cotai Strip, delivering sequential growth in hotel occupancy, ADR and gaming volumes, while mass win per day of $2.44 million was the highest result since the property’s opening last year. We expect The Parisian to continue to deliver growth in the quarters and years ahead as the Macao market grows and as we continue to refine the property’s service offerings to appeal to the fastest growing and most profitable segments in the Macao market.”

Mr. Adelson highlighted a recovery in the Macau market overall with market-wide gross gaming revenues increasing 21.9 per cent in the second quarter of 2017.

“Our market-leading critical mass of hotel, retail and entertainment offerings on the Cotai Strip allowed us to grow our premium mass revenues by nearly 40 per cent, an outstanding performance in this important segment, while our mass gaming revenues overall grew by 22.5 per cent. Strong mass revenue growth, coupled with higher hotel occupancy and growth in the VIP segment all contributed to a 23 per cent increase in our adjusted property EBITDA in Macao, which reached $600m in the quarter.”

This year marks the tenth anniversary of The Venetian Macao. When that opened in August 2007, The Venetian stood alone on Cotai.

“Its opening marked the first step in my vision to create the Cotai Strip,” Mr. Adelson said. “I was absolutely committed then and I remain as deeply committed today to continuing to support Macao’s economic diversification and its transformation into Asia’s leading business and leisure tourism destination. We have invested over $13bn in Macao since 2002, while consistently contributing to Macao’s diversification and appeal as a business and leisure tourism destination. We continue to lead the market not only in Integrated Resort development, but in the long-term and vital investment in the marketing of Macao as Asia’s leading business and leisure tourism destination. We remain confident that our market-leading Cotai Strip portfolio of properties will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide both Macao and our Company with a superior platform for future growth.”

Domestically the operator’s casinos performed well in Las Vegas but dipped slightly in Pennsylvania.
Revenue at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, increased 7.9 per cent to $384m, while adjusted property EBITDA increased 9.7 per cent to $79m.
Sands Bethlehem reported GGR of $147m with table games falling 4.5 per cent to $276m whilst slot handle increased 5.6 per cent year-over-year to $1.18bnfor the quarter.

Mr. Adelson added: “Looking ahead we remain focused on the execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. We remain confident in our ability to bring the economic benefits of our proven business model to promising new markets around the world.”