Las Vegas Sands (LVS) saw revenue from its Macau operations grow 8.1% to US$2.33 billion in the three months 31 March 2019, driven by growth across all of its Cotai properties and ongoing strength in the mass market segment.
While a detailed breakdown of Sands China’s mass revenue versus VIP revenue wasn’t provided, LVS Chairman and CEO Sheldon Adelson cited mass revenue growth of 13% compared to the same period last year, with Adjusted Property EBITDA of US$858 million.
The Cotai Strip performed strongly for the company, with the Venetian, Parisian, Sands Cotai Central and Plaza Macao all showing positive momentum.
The Parisian Macao booked the biggest growth of the Sands China portfolio, with revenue up 26.5% to US$454 million and casino revenue rising 33% to US$387 million on the back of good luck. VIP volume declined significantly, by 14.8% to US$3.92 billion, but win rate increased from 2.77% to 4.63%. Likewise, mass table drop saw a slight 5% increase to US$1.14 billion but enjoyed an improved win rate of 23.1%.
The Venetian Macao saw property-wide revenue increase by 3.3% to US$897 million including a 3.4% rise in casino revenue to US$740 million. Rolling chip was again down by 4.6% to US$7.50 billion, with win rate also down, but growth in mass table drop to US$2.27 billion was aided by a significant improvement in win rate from 23.7% to 28.5%. Slot handle increased 6.5% to US$891 million.
At Sands Cotai Central, net revenue was up 5.1% to US$577 million and casino revenues by 6.5% to US$445 million thanks to better luck in both segments. While VIP rolling chip volume fell 19.2% to US$1.94 billion and mass table drop by 3.5% to US$1.70 billion, win rates came in at 4.69% (up from 3.43%) and 23.8% (up from 21.4%) respectively.
Ironically, Plaza Macao was the one property to buck the trend of rising mass and falling VIP volumes, with VIP rolling chip booking a 46.9% increase to US$4.49 billion while mass table drop fell 14.4% to US$356 million. Net revenue was up 17.3% to US$224 million.
Sands Macao saw its casino revenue fall 2.1% to US$139 million, with bad luck playing its part despite volume increasing in both VIP and mass. Rolling chip was actually up 33.9% to US$1.20 billion but the property suffered from a win rate of just 1.86%.
In Singapore, revenue declined 12.0% year-on-year to US$767 million, with casino revenue down 16.6% to US$544 million. There were declines in both segments, with VIP rolling chip volume down 3.3% to US$7.13 billion and win rate also plummeting from 4.77% to 3.13%. Mass table drop was down 3.9% to US$1.34 billion with win rate slightly up to 21.2%.
Sands Chairman and CEO Sheldon Adelson, who has been battling illness in recent months, was quoted in the company’s results announcement praising progress in Sands China’s current Macau developments.
“Construction and development work on the Four Seasons Tower Suites Macao and the Londoner Macao is progressing,” he said. “We believe our market-leading interconnected IR portfolio in Macau, 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 Macau’s economic diversification and to deliver growth in the years ahead.”
