Sands China Q3 Net Sales Holded In Out-of-Game Segment
Thanks to the strong performance in all non-gaming sectors, Sands China was able to prevent a year-over-year decline in net sales for the three months ended Sept. 30.
Sands China reported an increase in annual net sales for all non-gaming businesses during the third quarter of 2014, including guest rooms, shopping mall operations, food and beverage, conventions, ferries and retail. That’s an unaudited result for the period, which was filed on the Hong Kong Stock Exchange on Tuesday, in contrast to a significant decline in casino sales of $2 billion, down 1.9% from a year earlier.
Sheldon Adelson, chairman and chief executive officer of Las Vegas Sands Corporation, the parent company of Sands China, had already hinted at this during Las Vegas Sands’ third-quarter earnings release on October 15.
“In Macau, we have achieved strong growth in the public and non-gaming sectors,” he said in a statement. “We have made record visits to Kotai Streep properties, and we have made more than 18 million visits to our Macau real estate portfolio during the quarter,” Adelson added.
Sands China is the highest-grossing gaming provider in Macau for non-gaming elements. The company operates three large shopping malls in its three Kotai lodgings. It also regularly hosts popular entertainment shows at the casino resort Venetian Macau’s Kotai Arena (pictured).
Adelson later said on a conference call: “Sands China accounts for more than half of the total non-gaming sales of the six gaming operators in Macau, demonstrating our clear leadership in this important and profitable segment. Everyone likes to talk about diversification in Macau’s pure game, but we’re actually talking about all aspects of diversification … I think diversification is important for Macau, and I believe diversification is important for our business.”
According to a filing on Tuesday, Sands China had gross net income of $2.32 billion in the third quarter, a slight decrease of 0.2% year-over-year.
Total non-gaming net sales for the three months ended Sept. 30 were $322.3 million, up 12.3% year-over-year. The segment accounted for 13.0% of the company’s total net sales. During the same period last year, this share was below 11.6%.
In the third quarter of 2014, Sands China’s non-gaming sales increased 17.5% year-over-year to $147.7 million in shopping mall operations.
Rooms rose 8.3% to $89 million. The food and beverage business segment posted third-quarter net income of $47.2 million, up 12.0% from the year-ago period. 바카라사이트 추천
The convention, ferry, retail and other non-gaming business segments achieved net sales of $61.4 million, up 9.9%.