Sands China 2nd-Qtr Profit Triples on Added Gaming TablesVinicy Chan
Sands China Ltd., the Macau casino operator controlled by billionaire Sheldon Adelson, said second-quarter profit more than tripled as it added gambling tables and hotel rooms to draw more visitors.
Net income for the Hong Kong-listed unit of Las Vegas Sands Corp. increased to $487.6 million from $160.5 million a year earlier, according to its parent’s filing in U.S. GAAP standard today. Revenue climbed 40 percent to $2.07 billion from $1.48 billion.
Sands China, Galaxy Entertainment Group Ltd. and Melco Crown Entertainment Ltd. have been expanding on the Cotai Strip, a piece of reclaimed land in Macau that’s comparable to the Las Vegas Strip. Sands China said in January that it has received government approval to add 200 additional gambling tables this year.
Adjusted property earnings before interest, taxes, depreciation and amortization, or adjusted property Ebitda, climbed 55 percent to $654.8 million. That compares with a median estimate of $653 million from a survey of nine analysts compiled by Bloomberg News.
Sands Cotai Central, the operator’s latest resort which opened in April last year in the world’s largest gambling hub, has been adding more hotel rooms. It has been expanding shopping malls and shows to attract middle-class gamblers. An improved high-speed rail connection also helped boost visitor numbers.
Sands China gained 1.4 percent to HK$42.80 at the close of Hong Kong trading. The stock has climbed 26 percent this year, compared with the city’s benchmark Hang Seng Index’s 3 percent decline.
Macau is the only place in China where casinos are legal and the city raked in gaming revenue of $38 billion last year. Sands plans to invest another $2.8 billion in the former Portuguese colony to build its fifth resort, to be named Parisian, which will have a replica of the Eiffel Tower and family-oriented facilities to attract middle-class gamblers from China, who provide wider margins.