Macau and Singapore lifted Las Vegas Sands past the billion revenue mark in the second quarter.
The flagship of the company’s lucrative China business, The Venetian Macao, generated US$687 million in revenue for the three months ended June 30, a 3.2 percent increase year on year. Adjusted EBITDA was up 4.9 percent to $256 million.
The new Parisian Macao, which opened next door last September, contributed $361 million to the total and $106 million of EBITDA.
“The Parisian Macao continued to exhibit growth, enjoying strong visitation, delivering sequential growth in hotel occupancy, average daily rate and gaming volumes, while mass win per day of US$2.44 million was the highest result since the property’s opening last year,” said LVS Chairman and CEO Sheldon Adelson.
But the star of the quarter was Singapore’s Marina Bay Sands, which delivered revenue of US$836 million, up 17.7 percent compared to the 2016 period. Adjusted property EBITDA hit $492 million, an increase of 37.8 percent.
Adelson cited “innovative programming, consistent mass gaming play, strength in non-gaming revenues and higher hold in VIP play” in explaining the stellar performance.
For LVS as a whole, net income for the quarter soared almost 62 percent $638 million.
The Venetian and Palazzo on the Las Vegas Strip reported a 7.9 percent increase in net revenue to $384 million over the period, despite declines in table game drop and slot handle of 6.1 percent and 8.5 percent, respectively.
Room revenue also fell as occupancy dipped 2.3 percentage points to 92.7 percent, although this was partially offset by a 1.7 percent increase in the average daily room rate.
“I think you know this quarter was disappointing in terms of the lodging component, which is more and more important in Las Vegas,” Chief Operating Officer Rob Goldstein said on a conference call with investors and analysts to announce the quarterly results.
He said, however, that indicators are pointing to a strong summer in the Vegas hotel sector and said the company expects improved results in the second half.
LVS announced a dividend of 73 cents per share payable on September 29.
