Las Vegas Sands’ two primary markets boomed during the first quarter of 2017 with revenues at Sands China increasing 15.3 per cent to $1.88bn whilst record convention business contributed to the best quarterly adjusted property EBITDA performance in Las Vegas since 2008.
Sheldon Adelson, Chairman and CEO, said: “We are pleased to have continued to execute our strategic objectives during the quarter and to have delivered a strong operating performance in each of our markets. The benefits of our convention-based Integrated Resort business model were clearly evident in our financial results, with adjusted property EBITDA increasing 24.9 per cent compared to the first quarter of 2016, reaching $1.15bn. We also continued to return excess capital to shareholders during the quarter.
Sands China reported income up 11.9 per cent to $349m in the first quarter of 2017.
The Venetian Macao generated revenue of $741 million and adjusted property EBITDA of $289m in the first quarter, with an adjusted property EBITDA margin of 39 per cent reflecting 7.8 per cent growth in adjusted property EBITDA.
Revenue and adjusted property EBITDA for the first quarter of 2017 at Sands Cotai Central were $467m and $143m, respectively, resulting in an adjusted property EBITDA margin of 30 per cent.
The Parisian Macao opened on September 13, 2016. Revenue and adjusted property EBITDA at The Parisian Macao were $318m and $82m, respectively, resulting in an adjusted property EBITDA margin of 25.8 per centThe Four Seasons Hotel Macao and Plaza Casino generated revenue of $143mand adjusted property EBITDA of $51m, resulting in an adjusted property EBITDA margin of 35.7 per cent in the first quarter of 2017. Sands Macao’s revenue increased four per cent to $182m and adjusted property EBITDA increased 74.2 per cent to $54m.
Mr. Adelson said: “In Macao, the market overall continues to recover and has exhibited growth in each of the last three quarters, while the compelling attractions and entertainment offerings of our industry-leading Cotai Strip property portfolio, recently expanded by the addition of The Parisian Macao, allowed us to deliver visitation growth of 30% across our property portfolio and to increase our hotel occupancy levels by 440 basis points compared to the year ago quarter. Our market-leading critical mass of hotel, retail and entertainment offerings on the Cotai Strip allowed us to grow our mass gaming business by 17 per cent and to expand our adjusted property EBITDA by 20.5 per cent to $624m.”
“We have invested approximately $13bn in Macao since 2002, while consistently contributing to Macao’s diversification and appeal as a business and leisure tourism destination,” he added. “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.
In Singapore, Marina Bay Sands’ revenue increased 15.9 per cent to $700m and adjusted property EBITDA increased 32.7 per cent to $365m.
“Marina Bay Sands in Singapore continues to attract increasing numbers of business and leisure visitors from across the region and to deliver the economic benefits of our convention-based business model to Singapore,” Mr Adelson said: “We are pleased to have established the property as a reference site for other cities and countries that are considering harnessing the power of the convention-based Integrated Resort business model. 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 contributed to an increase of 32.7 per cent in adjusted property EBITDA, which reached $365m for the quarter.”
Elsewhere in the United States, the operator enjoyed increases in both of it markets. Mr Adelson explained: “At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, record convention and group meeting business and cost discipline enabled us to deliver 40.2 per cent growth in adjusted property EBITDA compared to the same quarter last year. Adjusted property EBITDA of $122m was our best quarterly result since 2008.”
Revenue at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, increased 12.7 per cent to $434m.
Revenue and adjusted property EBITDA at Sands Bethlehem were $142m and $36m, respectively, for the quarter. Table games drop decreased 4.3 per cent to $269m for the quarter, while table games win percentage was 20.2 per cent, above the 19.8 per cent realised in the first quarter of 2016. Slot handle increased 7.3 per cent year-over-year to $1.16bn for the quarter, with a slot hold percentage of 6.7 per cent.