Strong gaming turnover boosts MBS Q3 earnings, Latest Business News - The New Paper

Strong gaming turnover boosts MBS Q3 earnings

This article is more than 12 months old

Stronger gaming turnover from high rollers and "continued cost discipline" helped boost third quarter earnings at the Marina Bay Sands resort.

Total revenues rose 4.1 per cent to US$793 million (S$1.08 billion) for the three months to Sept 30 while ebitda - a measure of operating profit - was up 13 per cent to US$442 million, parent company Las Vegas Sands reported yesterday.

This was due to stronger contributions from the casino business. That helped offset a poorer performance from its hotel rooms and food and beverage (F&B) segments.

Total gaming revenues increased 6.3 per cent to US$629 million. VIP gaming revenue, which accounted for more than 40 per cent of the total gaming turnover, jumped 30 per cent to US$9.44 billion.

Mass table revenue, which comprised nearly 40 per cent of total gaming turnover, fell 4.3 per cent to US$943 million. Slot machines, which accounted for 20 per cent of total gaming revenue, gained 5.8 per cent to US$3.66 billion in the quarter.

"The only disappointing part about the MBS is the lack of growth in the non-rolling slot electronic table game segment," said Mr Robert Goldstein, president and chief operating officer of Las Vegas Sands.

"But I think it speaks to our team over there running this exemplary building that we have driven this kind of an ebitda, out of a market that is not really growing that much."

MBS's non-gaming segments mostly fell for the quarter. Hotel room turnover shed 14.7 per cent to US$93 million, while F&B sales lost 11.1 per cent to US$48 million. Mall turnover was flat at US$42 million.

Average daily room rate fell to US$445 in the third quarter from US$475 in the same period last year. Occupancy dipped to 96.6 per cent in the quarter, resulting in revenue for each available room falling from US$467 a year earlier to US$430. - THE STRAITS TIMES


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