Sands China, which operates The Venetian, Parisian and Sands Cotai Central IRs in Macau, posted 2018Q3 results that were in line with market expectations and expressed confidence in the long-term prospects for the gambling hub.
Total revenue for Sands China increased by 13 percent to US$2.2 billion in the third quarter of 2018, according to the company’s results filing on Thursday.
Adjusted property EBITDA reached US$754 million, an increase of 15.8 percent year-on-year, while net income was up 13 percent to US$454 million.
Bernstein analysts said the results were in-line with their expectations, with GGR reaching US$2.2 billion, an increase of 16 percent year-on-year.
Sands’ VIP business outperformed the market with 15 percent year-on-year growth, while mass growth was in line at 16 percent year-on-year growth.
With the exception of The Parisian, all of the group’s properties in Macau experienced growth in revenue. Bernstein said this was the result of temporary reductions in room inventory due to renovations at The Parisian.
During an earnings call, Sands management said it was pleased with the strong financial results in the quarter and said that they remained confident of Macau’s long-term potential.
“Given our confidence in Macau’s future, we have elected to meaningfully increase our planned investments in the Macau market. We will increase the breadth and scale of our offerings throughout The Londoner Macao, Four Seasons Tower Suites Macao, and St. Regis Tower Suites Macao,” said Sheldon Adelson, chairman, and CEO of Las Vegas Sands.
“We will also expand our entertainment, convention, and non-gaming attractions across our Cotai Strip portfolio. These important projects will come online in phases throughout 2020 and 2021,” he added.
Parent company Las Vegas Sands is seen as a key contender for a license in Japan. (AGB)