MBS Q3 profit surges as Lady Luck deserts high rollers

SINGAPORE — Marina Bay Sands enjoyed a surge in profits in the third quarter as its casino won a bigger percentage than in the previous three months from VIP gamblers, who placed larger bets.

The integrated-resort operator earned an operating income of US$282.1 million (S$349.8 million) in the three months ending Sept 30, 69.4 per cent higher than that in the same period last year.

Adjusted property EBITDA — or earnings before interest, taxes, depreciation and amortisation — surged 43.3 per cent to US$373.6 million, it said. Net revenue increased 23.8 per cent to US$774.2 million.

High rollers laid down US$13.8 billion in bets in the quarter, up 16.9 per cent from the year-ago period. The casino’s win percentage from VIPs rose 1.06 percentage points to the long-run industry average of 2.85 per cent as the lucky streak enjoyed by premium players came to a halt.

Mass-market gamblers at MBS placed US$1.2 billion in bets in the quarter, up 2.2 per cent, but the casino’s win percentage for this segment fell by 0.4 percentage point to 23.6 per cent.

In its non-gaming business, the company’s hotel-room segment achieved revenue growth of 11.1 per cent to US$93.3 million in the quarter, while revenue for its mall segment fell 4.3 per cent to US$38 million. Hotel rooms were almost full, with occupancy unchanged at 99.8 per cent and revenue per available room up 11.1 per cent at US$400.

Mr Sheldon Adelson, Chairman and Chief Executive of parent company Las Vegas Sands, highlighted the ability of MBS to drive growth in tourism and conventions.

“Our integrated resort, in the first 24 months, increased tourism in Singapore by 41 per cent … We have changed Las Vegas with our business model and convention base. We changed Macau — everybody in the government would acknowledge that. We’ve changed Singapore, and we can easily change any other city (where) we have a MICE (meetings, incentives, conferences and exhibitions) focus (and) MICE-based business model,” he added.

Company-wide, Las Vegas Sands reported that net income in the third quarter increased 79.2 per cent to US$626.7 million, buoyed by the strong performance by its operations in Singapore and Macau, where it runs the Venetian, Sands Cotai, Sands Macau and the Four Seasons Hotel Macau and Plaza Casino.

Operating income rose 71.3 per cent to US$914.8 million. Consolidated adjusted property EBITDA grew 45.5 per cent to US$1.28 billion, while net revenue rose 31.7 per cent to US$3.57 billion, said Las Vegas Sands. WITH AGENCIES