Casino operator Las Vegas Sands Corp reported a year-on-year increase of 61.9 percent in net income in the second quarter of 2017 to US$638 million. The quarterly results were driven by strong performance at its Macau and Singapore subsidiaries, the firm announced on Wednesday.
Sands China’s flagship property Venetian Macao generated revenue of US$687 million, up 3.2 percent in year-on-year terms. Adjusted property EBITDA in the second quarter was US$256 million, a year-on-year increase of 4.9 percent, with an adjusted property EBITDA margin of 37.3 percent, reflecting a 70 basis point increase in margin compared to the second quarter of 2016.
Venetian Macao’s casino revenue increased 3.2 percent year-on-year, to US$586 million. The property recorded rolling chip volume of US$5.17 billion for the period, down 24.7 percent from the prior-year period. Rolling chip win for the second quarter stood at 3.61 percent, above the expected range and the 2.73 percent experienced in the prior-year quarter.
The Parisian Macao, Sands China’s latest Cotai resort, opened in September 2016, reported its third full quarter of operations.
“The Parisian Macao continued to exhibit growth, enjoying strong visitation… delivering sequential growth in hotel occupancy, average daily rate and gaming volumes, while mass win per day of US$2.44 million was the highest result since the property’s opening last year,” said Mr Adelson with the second quarter results.
Revenue and adjusted property EBITDA at the Parisian Macao were US$361 million and US$106 million, respectively, resulting in an adjusted property EBITDA margin of 29.4 percent.
Non-rolling chip drop at the property’s casino was US$973 million, with a non-rolling chip win percentage of 19.7 percent. Rolling chip volume was US$3.76 billion, with a rolling chip win percentage of 3.89 percent, above the expected range and the first quarter 2017 win percentage of 2.82 percent.
Las Vegas Sands said the firm was currently rearranging the hotel accommodation in the 3,000-room Parisian Macao to appeal to upper-end mass-market gamblers, with the revamped accommodation “coming on board in early 2018” and the renovation work completed “by the end of 2018”.
Las Vegas Sands has earmarked a total of approximately US$1.05 billion in capital investment globally for 2017, including US$500 million for maintenance and US$275 million for refurbishment of the Parisian Macao, according to the firm’s presentation on Wednesday quoted by GGR Asia.
Meanwhile Marina Bay Sands in Singapore – also part of the property portfolio of Las Vegas Sands – generated revenue of US$836 million in the second quarter of 2017, up 17.7 percent compared to the prior-year period. Adjusted property EBITDA was US$492 million, an increase of 37.8 percent from a year earlier.
“Marina Bay Sands delivered a record quarter,” said Adelson. “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 all contributed to the outstanding performance,” he added.
Rolling chip volume for the Singapore unit was US$8.71 billion for the quarter, a year-on-year increase of 29.2 percent. Non-rolling chip drop was US$911 million during the April to June period, down by 2.7 percent in year-on-year terms. Total mass win-per-day during the quarter was US$4.42 million, slightly below the same quarter last year. Slot handle increased 4.9 percent to US$3.40 billion.