JP Morgan downgrades Sands Macau Q3 EBITDAR estimate
Analysts have reduced their third-quarter property-level EBITDAR estimate for Las Vegas Sands Corp’s Macau operations.
Macau.- JP Morgan Securities has revised downwards its Q3 property-level earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) estimate for Las Vegas Sands Corp’s Macau operations by 4.3 per cent. Analysts, Joseph Greff, Ryan Lambert, and Samuel Nielsen said the adjustment was primarily due to weather-related disruptions in September.
Typhoon Saola caused the temporary closure of gaming venues in the city for approximately nine hours and there have also been heavy rains. Analysts have reported that Macau’s casino gross gaming revenue (GGR) for the first ten days of September was down at MOP4.30bn (US$530m).
JP Morgan Securities now anticipates market-wide GGR to reach MOP14bn for the month – an 18 per cent month-on-month decrease. For the third quarter of 2023, it expects GGR to reach MOP48bn, representing a 5 per cent quarter-on-quarter increase.
Analysts also adjusted their fourth-quarter 2023 Macau EBITDAR forecast to US$670m, down from US$727m. They anticipate property-level EBITDAR of US$2.9bn for 2024, down from the previous projection of US$3.1bn.
Sands China posted net revenue of US$1.62bn for the second quarter of the year. Net income for the period amounted to US$187m, compared to a net loss of US$422m in the second quarter of 2022.
The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) for the second quarter was US$541m, compared to an EBITDA loss of US$110m for the second quarter of 2022. Capital expenditures totalled US$196m, including US$42m in Macau activities.
