Sands eyes $5b in Asia development projects

Las Vegas Sands has $5 billion in development projects in the pipeline in Asia over the next few years, Chairman and CEO Sheldon Adelson said after the company released Q3 results that were largely in line with analysts’ expectations.

“We remain enthusiastic about the future growth opportunities in Asia,” he said on a call with analysts. “Next year, we will introduce approximately two million square feet of luxurious suite accommodations on Cotai with the opening of the Grand Suites at Four Seasons Macau and the Londoner Macau.”

Additional tourism and entertainment amenities of The Londoner Macao will debut throughout 2020 and 2021, he added. About $2.2 billion of the investments are in Macau, while the figure doesn’t include any possible IR development in Japan.

For Q3, Sands China  saw net revenue fall 2.0 percent, compared to the third quarter of 2018, to US$2.11 billion, while net income remained flat at US$454 million.

In Macao, adjusted property EBITDA was US$755 million, consistent with the prior year, led by a 9 percent gain in the mass market segment, while VIP rolling volume was down across all of its properties.

The adjusted property margin there was 35.7 percent, up 70 basis points from the prior year. 

“We remain steadfast in our belief that Macao is the best market in the world with respect to the continued deployment of our capital. We look forward to making additional investments in Macao as we contribute to Macao’s diversification and evolution into Asia’s leading leisure and business tourism destination,” Adelson said. 

Analysts say the results were in line with expectations. Bernstein said Sands China maintained market share at 23.2 percent, with its mass market share at 28.7 percent, up from Q2, but down from 30.1 percent last year. 

Sands lost VIP share in the quarter, declining to 13.1 percent, below Q2 2019 at 15.3 percent and below Q3 2019 at 16.1 percent. The firm noted that VIP hold was at the low end of the normal range, while it was higher in mass.

Marina Bay Sands in Singapore saw a 19 percent gain in VIP GGR on higher hold of 4 percent. Mass GGR was down 4 percent, hurt by the hike in entrance fees for locals and disruption on the casino floor. 

Hold adjusted EBITDA fell 4 percent at $387 million. 


Previous articleOkada Manila EBITDA margin improving
Next articleSkyCity targets Friday opening after fire

Related Articles

LVS to kick off Q3 earnings, with narrower loss expected

LVS to kick off Q3 earnings, with narrower loss expected

Las Vegas Sands will be the first of the major operators to report its Q3 results on Wednesday, providing a snapshot of how the recovery process from the pandemic is faring in three major gaming jurisdictions.

Adelson top donor to Trump’s reelection efforts

Las Vegas Sands Chairman Sheldon Adelson and his wife Miriam Adelson became the biggest contributors to Donald Trump’s re-election effort, with $75 million in donations to a super-PAC that is spending heavily on television ads supporting the president.

Adelson rips Japan’s “negative regulations”

Las Vegas Sands Chairman and Chief Executive Officer Sheldon Adelson chose his words carefully back in May when he announced that his firm, considered by many observers to be the frontrunner among major IR operators, had pulled out of the Japan race. But in an earnings conference call held last week, he let it rip.

Adelson: “negative regulations” killed Sands’ interest in Japan IR market

Las Vegas Sands Chairman and CEO Sheldon Adelson offered a more candid explanation of why his company pulled out of the Japan IR race in May, citing “negative regulations” as the key factor. Speaking during an earnings conference call, Adelson stated, “The regulations that were promulgated by the Japanese government… were not conducive to attracting […]

Sands China reports US$549 million net loss for Q2

Las Vegas Sands reported its financial results for the quarter ending June 30 and, as expected, they were grim, including a net loss of US$549 million at Sands China. Sands China revenues for the quarter came in at only US$40 million, which was a 98.1 percent drop from the same quarter in 2019. Marina Bay […]

Focus on opex as operators poised to report “worst” quarter ever

Macau’s six operators are likely to post the worst quarterly performance ever in Q2, with the focus likely to be on who has done the most to control operating expenditures during the period, Morgan Stanley reports in a note.

Moody’s says Asia operators have enough cash for a year

Nine listed gaming operators in the Asia Pacific region are likely to see a plunge of about 70 percent in EBITDA this year, but all should have sufficient cash to cover basic needs for the next year, Moody’s Investors Service said.
Sands by night

Sands China to repatriate Filipino workers

Sands China is organizing a flight to repatriate some 130 Filipino workers stranded in Macau due to the Covid-19 pandemic, according to local media reports.

Sands’ withdrawal a vote of “no confidence” in Japanese policymakers

In an earnings conference call in April 2019, Las Vegas Sands President and Chief Operating Officer Robert Goldstein declared, “Our commitment to Japan is immense. It will be lots and lots of rooms—many, many rooms. There will be lots of retail. There will be lots of MICE, far beyond what people understand we're thinking about for Japan… We are deep into it. We're committed to it. We have a team on the ground there.

Las Vegas Sands pulls out of Japan IR race

Las Vegas Sands unexpectedly announced today that it would be giving up its bid to build a major urban IR, thus removing a contender that many analysts predicted would become one of the main winners in the contest. “My fondness for the Japanese culture and admiration for the country’s strength as a tourism destination goes […]