Sands China Ltd has reported net revenue of US$1.82 billion in 2Q17, an increase of 23% over the same period in 2016 thanks in part to the opening of Parisian Macao last September, while Marina Bay Sands (MBS) in Singapore produced stunning results for Las Vegas Sands.
Sands China’s income increased 37.6% to US$326 million for the quarter compared to US$237 million 12 months ago, with adjusted property EBITDA up 23% in Macau to US$600 million and 37.8% at MBS.
The results were largely in line with expectations, with revenue up at the Parisian, the Venetian and Plaza Macao but down at Sands Cotai Central and Sands Macao.
The Parisian saw its revenue rise 13.5% sequentially to US$361 million, with rolling chip volume of US$3.76 billion, non-rolling chip volume of US$973 million and slot handle of US$935 million as its casino revenue climbed by more than 15%.
The Venetian generated revenue of US$687 million and adjusted property EBITDA of $256 million in the second quarter, with an adjusted property EBITDA margin of 37.3% reflecting 4.9% growth in adjusted property EBITDA and a 70 basis point increase in EBITDA margin compared to the second quarter of 2016.
Rolling chip volume fell by 24.7% to US$5.17 billion but was aided by significantly higher hold of 3.61%, while non-rolling chip drop grew 2.3% to US$1.7 billion.
The Plaza Macao and Four Seasons Hotel enjoyed a 9.6% increase in net revenue to US$137 million and adjusted property EBITDA of $59 million with rolling chip volume up 28.4% to US$2.42 billion and non-rolling chip volume up 28.3% to US$295 million.
“In Macau, the recovery in the market overall continued during the quarter, with market-wide gross gaming revenues increasing 21.9% in the second quarter of 2017,” said Chairman and CEO Sheldon Adelson.
“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%, an outstanding performance in this important segment, while our mass gaming revenues overall grew by 22.5%. Strong mass revenue growth, coupled with higher hotel occupancy and growth in the VIP segment all contributed to a 23% increase in our adjusted property EBITDA in Macau, which reached US$600 million in the quarter.
“The Parisian Macao continued to exhibit growth, enjoying strong visitation and delivering adjusted property EBITDA of US$106 million for the quarter. 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 US$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 Macau 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 Macau market.”
Mr Adelson also pointed to the “record-setting performance in Singapore” where MBS saw its net revenue climb 17.7% to US$836 million year-on-year thanks to a 23.9% jump in casino revenue.
It was led by a 29.2% increase in rolling chip volume to US$8.71 billion, helped further by a rolling chip win percentage of 4.42%. Non-rolling chip drop fell slightly to US$911 million while slot handle grew 4.9% to US$3.4 billion.
Revenue at Sands Cotai Central fell 5.9% to US$445 million on the back of a steep 18.2% decline in rolling chip volume, while Sands Macao saw its revenue fall by 13% to US$161 million, with the loss of some gaming tables to the Parisian last year contributing to a 50.5% fall in rolling chip volume to US$968 million.
“We have invested over US$13 billion in Macau since 2002, while consistently contributing to Macau’s diversification and appeal as a business and leisure tourism destination,” Mr Adelson said. “We continue to lead the market not only in Integrated Resort development, but in the long-term and vital investment in the marketing of Macau 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 Macau, help attract greater numbers of business and leisure travelers and provide both Macau and our company with a superior platform for future growth.”
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