Sands China 2Q seems pretty good

A summary of the statements of Mr. Sheldon G. Adelson, Chairman and Chief Executive Officer of LVS:

This was a great quarter and I am very pleased with our results. Company-wide adjusted EBITDA was US$1.21 billion, an increase of 26% over the prior year. Adjusted earnings per diluted share increased by 38% over the prior year to US73 cents per share.

During the quarter both our Macao and Singapore operations performed exceptionally well. Sands China grew its EBITDA by 23% year-on-year, driven by strong mass gaming revenue growth.

I remain as confident as I have ever been in our company’s prospects. The Macao market is growing and its growth rate has been accelerating for four consecutive quarters. At the same time, the significant new supply that has been added on Cotai since 2015, amounting to over eight thousand hotel rooms and over US$13 billion of additional invested capital, has been successfully absorbed by the market.
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Now let me give you some additional highlights of our results in Macao for the quarter.

In the second quarter, adjusted property EBITDA for our Macao operations was US$600 million, an increase of 23% compared to the prior year. Total net revenues increased by 23%, driven by growth in mass gaming and non-gaming segments. We maintained a strong EBITDA margin of 32.7% as we benefited from revenue growth and ongoing cost efficiencies.

Despite the significant increase in Macao’s gaming and hotel capacity compared with the prior year quarter, our mass table gaming revenues grew by 23% year–over-year, and our non-gaming revenues grew by 22% year-over-year.

We experienced broad-based growth across both premium mass and mass segments, increased patronage and length of stay with hotel accommodation, increased spend at our shopping malls and entertainment events. Our premium mass business performed exceptionally well, with growth of nearly 40% over the prior year. 

During the quarter hotel occupancy across our portfolio increased by eight percentage points compared to the prior year, to 86%, with occupied room nights growing by 35% compared to the prior year.