Serious Singapore's two casinos record higher profits, who says economy bad? Huat ah!

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SINGAPORE — Integrated resort and casino operator Marina Bay Sands delivered a slightly better report card in the third quarter than the corresponding period in the previous year, even while betting by high rollers and mass market punters slumped.

For the three months ended Sept 30, adjusted property earnings before interest, tax, depreciation and amortisation (EBITDA) — the key measure for operating performance — rose 0.3 per cent year-on-year to US$390.7 million (S$541.5 million), MBS parent Las Vegas Sands said on Thursday in Las Vegas (Friday, Nov 4 in Singapore).

Total revenue at MBS rose 1.6 per cent to US$762.6 million, with the casino business taking in 1.1 per cent more at US$591.4 million. Room revenue at the luxury hotel surged 10.4 per cent to US$109 million; mall revenue increased 1.9 per cent to US$42.3 million; food and beverage revenue grew 5.7 per cent to US$54 million; while convention, retail and other income rose 15.4 per cent to US$27 million.

VIP betting turnover slumped 36.5 per cent to US$7.26 billion but the rolling chip win percentage — a measure of winnings at tables from high rollers — jumped to 3.25 per cent from 2.61 per cent in the previous corresponding quarter. That is also significantly higher than the long-run expected rolling chip win percentage of 2.85 per cent. Mass market volume fell 8.1 per cent to US$985 million, but the casino win rate improved to 28.8 per cent from 27 per cent.

Betting turnover at Singapore’s casinos has been hit as China’s crackdown on corruption led many wealthy Chinese to cut back on conspicuous consumption and curbed large cross-border flows of cash, analysts said.

Hotel occupancy at MBS improved to 98.3 per cent in the quarter from 98 per cent previously, while the average daily room rate jumped 10 per cent to US$475, an all-time record for the hotel. MBS’ retail mall operations continued to outperform the Singapore market, with tenant sales per square foot for the year ending Sept 30 of about US$1,400, Las Vegas Sands CEO Sheldon Adelson said.

MBS’ results came just hours after rival Genting Singapore reported on Thursday that third-quarter net profit rose 187 per cent to S$106.9 million from S$37.2 million in the year-ago period, even while overall revenue slumped 9 per cent to S$581.5 million. Genting Singapore’s adjusted EBITDA grew 12 per cent year-on-year to S$233.6 million due to a sharp drop in bad debt provisions.

In its company-wide third-quarter report card, Las Vegas Sands said consolidated net revenue increased 2.6 per cent to US$2.97 billion from US$2.89 billion in the corresponding period in 2015. Net income decreased 2.1 per cent to US$605.5 million from US$618.2 million in the year-ago quarter.

http://www.todayonline.com/business/...ts-improved-q3


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