The Las Vegas Sands Corp group says it sees a particular opportunity for it “to perform better” at its smaller Macau properties The Parisian Macao in the Cotai district, and Sands Macao. The latter is the group’s first venue built in the city, located in downtown Macau.
The comment – on a Wednesday call with investment analysts to discuss the second quarter earnings of the group – was from Grant Chum Kwan Lock, chief executive and president of Sands China Ltd, Las Vegas Sands’ Macau unit. He was explaining how the firm was working to recover market share, after in May commentary the group admitted it had not been aggressive enough on player reinvestment.
Mr Chum stated: “Around late April, we started to implement a more aggressive customer reinvestment programme.
“We are seeing some encouraging initial results from those increased levels of reinvestment. As we got into May and June, the performance of Sands China did improve and… we will be continuing to adjust to the market conditions as and when necessary.”
He added: “We are also looking at opportunity for us to perform better from our smaller properties Parisian and Sands.”
The Sands China executive also referred to the revamped The Londoner Macao on Cotai, which had seen its entire refreshed and reorganised room inventory become available part way through the second quarter, in late April.
Mr Chum stated: “Overall the reception for The Londoner has been phenomenal. We’re getting exceptional feedback from customers.”
Robert Goldstein, chairman and chief executive of the parent, Las Vegas Sands, was asked how the firm would work to improve Macau earnings before interest, taxation, depreciation and amortisation (EBITDA).
Adjusted property EBITDA at The Parisian Macao had fallen 47.0 percent year-on-year in the second quarter, to US$44 million. Net revenue at the property was down 26.8 percent year-on-year, at US$194 million. At Sands Macao, adjusted property EBITDA in the three months to June 30 had fallen 10.0 percent year-on-year, to US$9 million. That property’s net revenues dropped 10.1 percent year-on-year, to US$71 million.
Mr Goldstein stated: “We acknowledged our failure in believing [previously] our assets were so strong we could overcome this very different environment than we’re used to.
“We’re not leading the market. We’re simply in the mix. And that’s a good thing. Our short-term goal in the near quarters… is we believe The Londoner and Venetian can generate US$2 billion [EBITDA annually] between them. We believe that the Four Seasons can do US$300 million plus.”
He added: “The Parisian can do US$300 million plus: we think the Sands [Macao] can do US$100 million more because things are changing down on the [Macau] peninsula.”
Mr Goldstein stated: “Our short-term goal… is that we can get US$2.7 billion [EBITDA annual] run rate” market wide in Macau.
