Macau casinos: Sands China posts net revenue of US$1.77bn for Q3
Net revenue was down 1 per cent in year-on-year terms.
Macau.- Sands China has shared its financial results for the second quarter of the year. The company posted net revenue of US$1.77bn, up 1.14 per cent from the previous quarter and 1 per cent in year-on-year terms.
Net income was US$268m, up 16 per cent year-on-year and 9 per cent versus Q2. The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$585m, compared to US$631m for the third quarter of 2023.
The Venetian Macao generated net revenue of US$692m, down 0.87 per cent quarter-on-quarter. Casino revenue was US$554m, compared to US$575m in the third quarter of 2023. The Venetian Macao’s adjusted property EBITDA was US$267m. The venue had a hotel occupancy of 98.8 per cent.
The Londoner Macao generated net revenue of US$460m, up 3.60 per cent compared to the previous quarter, while casino revenue reached US$338m. Adjusted property EBITDA was US$124m. Hotel occupancy was 97.7 per cent.
The Parisian Macao generated net revenue of US$250m, up 6 per cent sequentially. Casino revenue was US$189m, compared to US$181m in the third quarter of 2023. The casino venue’s adjusted property EBITDA was US$74m. Hotel occupancy was 98.5 per cent.
The Plaza Macao posted net revenue of US$257m, up 2.80 per cent in quarter-on-quarter terms. Casino revenue was US$182m, compared to US$108m in the third quarter of 2023. The casino venue’s adjusted property EBITDA was US$102m. Hotel occupancy was 93.2 per cent.
The Sands Macao posted net revenue of US$81m, up 2.53 per cent compared to the previous quarter. Casino revenue was US$73m, compared to US$75m in the third quarter of 2023. The casino venue’s adjusted property EBITDA was US$14m. Hotel occupancy was 99.4 per cent.
Robert G. Goldstein, Sands China CEO and chairman said: “In Macau, the ongoing recovery continued during the quarter, although visitation to the market remains below the levels reached prior to the pandemic. Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macau and support its development as a world centre of business and leisure tourism positions us well as the recovery in travel and tourism spending progress.”
Sands China EBITDAR to rise 16.6% in 2025, analysts say
Analysts at JP Morgan Securities have forecast that Sands China’s earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) could rise 16.6 per cent year-on-year to US$2.77bn in 2025. Joe Greff and Sam Nielsen attributed the increase to the Londoner Macao’s renovation.
The US$2bn Londoner project opened in phases starting in February 2021. The ‘British-themed’ complex has five hotels, collectively offering nearly 6,000 rooms and suites. One of the resort’s gaming floors has already been renovated and is now open, while hotel rooms and other revenue-generating elements will open gradually in the fourth quarter of 2024 and throughout 2025. According to analysts, this should enable Sands China to achieve growth in 2025 that exceeds that of its peers in the city.
