China – Record mass gaming in Macau drives Sands’ Q1 increaseBy Phil - 18 April 2019
Record mass gaming results in Macau helped offset falls in VIP gaming in Singapore for Las Vegas Sands, who reported net revenues of $3.65bn, up nearly two per cent, in its first quarter.
In Macau, Adjusted Property EBITDA increased 8.7 per cent to $858m, at Marina Bay Sands in Singapore, EBITDA was $423m whilst in Las Vegas it was $138m.
Net income came in at $708m during the quarter compared to $821m a year ago.
Sands China reported an increase of eight per cent in its revenues to $2.33bn whilst Las Vegas generated revenue of $471m up from $433 last year. Marine Bay Sands generated revenue of $767m and EBITDA of $423m.
Sheldon Adelson, Chairman and CEO, said, “We are pleased to have delivered strong financial results in the quarter, led by consistent growth in the mass and non-gaming segments in Macao. Our market-leading Integrated Resort property portfolio in Macao delivered revenue growth of 13 per cent in the high-margin mass gaming table segment and adjusted property EBITDA of $858m. At Marina Bay Sands in Singapore, our hotel, retail, convention and mass gaming segments all exhibited strength, contributing to $423m of adjusted property EBITDA for the quarter.
“We are also extremely pleased to have reached an agreement with the Singapore Tourism Board to invest an additional $3.3bn to expand our Marina Bay Sands Integrated Resort in Singapore. Our investments will include spectacular new attractions including a state-of-the-art arena designed specifically for live musical entertainment and theatrical performances, a luxurious new hotel tower, additional MICE capacity and luxury retail. We believe the expansion of Marina Bay Sands will meaningfully enhance Singapore’s appeal as a leisure and business tourism destination while creating an outstanding platform for growth for the company.
“In Macau, construction and development work on the Four Seasons Tower Suites Macao and the Londoner Macao is progressing. We believe our market-leading interconnected Integrated Resort portfolio in Macao, bolstered by our investments in additional luxurious hotel suite offerings, destination retail, MICE capacity and entertainment attractions, positions us exceedingly well to continue to contribute to Macao’s economic diversification and to deliver growth in the years ahead.”
Rob Goldstein – President & Chief Operating Officer, added: “We had an outstanding quarter, especially in Macau. Company-wide adjusted EBITDA was $1.45bn. In Macau, adjusted EBITDA was $858m, up nine per cent over the prior year. We achieved record mass table revenues which reached $1.5bn, an increase of 13 per cent year-on-year. Our profitability continues to lead the industry with EBITDA margins of 36.8 per cent.”
“The Parisian had a record quarter with adjusted EBITDA of $163m with mass win per table growing by 21 per cent year-on-year,” he added. “Next month, we celebrate the 15th anniversary of the Sands Macao opening.
Union Gaming’s John DeCree said: “The 1Q beat, highlighted by an acceleration in mass revenue in Macau, coupled with green shoots in the Chinese economy, create a nice tailwind for LVS just as y/y comparisons in Macau are set to get decidedly easier beginning in May.”