Supplier News
China – Improving Macau sees slight increase for Sands
By Phil - 7 November 2016
Its new casino in Macau helped Las Vegas Sands deliver an increase in consolidated net revenue of 2.6 per cent, taking GGR in the third quarter to $2.97bn.
Sands reported that adjusted property EBITDA in Macau increased 15.3 per cent to $628.5m in the third quarter with the new Parisian Macao casino contributing just over $19m of adjusted property EBITDA since opening on September 13.
Sheldon Adelson, Chairman and CEO, said:”We are pleased to have continued to execute our strategic objectives this quarter and to have delivered a solid operating performance in each of our markets, which enabled us to generate $1.14bn in adjusted property EBITDA for the quarter, an increase of 8.6 per cent compared to the third quarter of 2015. Importantly, the operating environment in Macau continued to improve during the quarter, particularly in the mass segment, as the Macao market exhibited growth in total gaming revenue, overnight visitation, and length of stay. Our Macao portfolio experienced strong visitation and enjoyed the benefits of our market-leading hotel, retail and entertainment offerings while generating $628.5 million in adjusted property EBITDA, an increase of 15.3 per cent over the same quarter last year.
“The Parisian Macao, our latest Integrated Resort on the Cotai Strip in Macao, opened on September 13, 2016, expanding our hotel, group meeting retail and entertainment offerings, and contributing more than $19 million of adjusted property EBITDA (at an EBITDA margin of 28 per cent) during its first 18 days of operation. We are pleased to have had the opportunity to invest approximately $13bn in Macau, contributing to Macau’s diversification and appeal as a business and leisure tourism destination. We remain confident that our market-leading Cotai Strip properties will continue to provide the economic benefits of diversification to Macau, help attract greater numbers of business and leisure travellers, and provide both Macau and our company an outstanding and diversified platform for growth in the years ahead.
“We remain steadfast in our focus on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. Our business model generates the industry’s most diversified set of cash flows and delivers the industry’s highest revenue and profit from non-gaming segments, while bringing unsurpassed economic and diversification benefits to the regions in which we operate. We remain confident in our ability to further extend our global leadership position and deliver strong growth in the future.”
GGR for Sands China increased 3.6 per cent to $1.72bn in the third quarter of 2016, compared to $1.66bn in the third quarter of 2015. Marina Bay Sands generated revenue of $762.6m and adjusted property EBITDA of $390.7m. Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore. Consistent mass win-per-day of $4.8m and strength in non-gaming revenues, including a 10.4 per cent increase in RevPAR, and higher win percentage in the rolling gaming segment contributed to an adjusted property EBITDA performance of $390.7m, up 0.3 per cent compared to the same quarter last year.
At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, an 8.9 per cent year-over-year increase in RevPAR to $232, and growth in slot volumes and non-Baccarat table win, drove a 6.9 per cent increase in adjusted property EBITDA during the quarter. Revenue for Sands Bethlehem in Pennsylvania meanwhile increased 1.6 per cent to $146.3m.
