Sands China 17Q1 profit jumps 11.5 pct

Macau casino operator Sands China reported an 11.5 percent year-on-year increase in profit to US$349 million in the first quarter of 2017, compared to US$313 million in 16Q1.

Total net revenues for Sands China increased 15.5 percent to $1.9 billion in 17Q1.

Adjusted EBITDA increased 20.5 percent to $624 million in the quarter.

Sands China’s Venetian Macao property generated the largest proportion of revenue to the group – bringing in net revenue of $742 million. Adjusted EBITDA of the property was $290 million in the quarter, a growth of 8.2 percent year-on-year.

The Parisian Macao, which opened on September 13, 2016, generated net revenue and adjusted EBITDA of $315 million and $82 million respectively.

Other factors affecting earnings in 17Q1 included corporate expenses of $29 million, mainly due to higher royalty fees with the opening of the Parisian Macao; pre-opening expenses of $2 million, depreciation and amortization expense of $191 million and interest expense of $37 million.

“The increase was primarily due to an $11 million increase in interest and other finance cost driven by an increase in bank borrowings and a US$10 million decrease in capitalized interest as we opened The Parisian Macao in September 2016,” said the company.

Analysts noted that Sands continued to draw benefit from Macau’s mass-led recovery, with mass table GGR growing 18 percent in the quarter.

“We continue to feel very comfortable owning the mass-centric names Galaxy and Sands China as mass remains a freight train underpinning the market recovery,” noted Union Gaming on Friday.