Sands Cotai Central opening new premium mass zone
Sands China Ltd is to open a new premium mass gaming area at Sands Cotai Central on Cotai early next year, the parent Las Vegas Sands Corp says.
In June the firm said a similar zone at The Venetian Macao was generating the equivalent of US$20,000 (159,712 patacas) per table per day and more than US$300 million in annual revenue.
?SCC [Sands Cotai Central], as you know, has almost 6,000 hotel rooms on Cotai, and at this point, there’s 200 less mass table games at SCC versus The Venetian [Macao]. So in the spring, we open up our premium mass offering of 75 more games,? Rob Goldstein, LVS executive vice president and president of global gaming operations told analysts on the LVS third quarter earnings call.
His boss, LVS chairman Sheldon Adelson reiterated during the call that in the light of the Macau government?s controls on the number of new live dealer tables allowed in the market, Sands China ? in common with other operators ? would ?take the lower-performing tables from other properties? to improve yields.
At an investor presentation earlier this year in New York City, Michael Leven, LVS president and chief operating officer, mentioned investing ?US$100 million? in a new premium mass area near to Holiday Inn and Conrad Macao at Sands Cotai Central.
At the time Mr Leven said it would ?produce 80 more tables at the premium mass level and open some time in the third quarter of 14?. Mr Goldstein?s latest comment suggests the opening date may have been brought forward.
The latter executive added in the latest call with analysts that Sands Cotai Central was rapidly closing in on the generation annually of US$1 billion in earnings before interest, taxation, depreciation and amortisation.
Mr Adelson said 25 percent of the firm?s Macau EBITDA was generated from non-gaming including hotel, retail, convention and exhibition businesses. According to Bloomberg estimates, the market average for non-gaming is 10 percent.
Elsewhere on the call, Mr Adelson recapped comments he made in the second quarter earnings discussion regarding LVS?s Madrid project.
?With respect to our European development in Madrid, there are a number of various steps left in the development process. Any investment would be subject to the receipt of government approvals and the finalisation of the grants and incentives package that would enable investment?? he stated.
A recent note from Joe Greff, managing director of investment bank J.P. Morgan in New York, suggested that dropping the Spain scheme would act as a catalyst in boosting LVS?s Nasdaq share price and achieving the bank?s target of US$75.00 (599 patacas) per share. At the close of business on Friday, New York time, LVS was already closing in on that target, aided by record third quarter earnings in Macau that beat the general market. On Friday the parent firm?s stock was up 2.18 percent, at US$72.52.
LVS also stated on the latest call with analysts it had not yet started looking for a replacement for Kenneth Kay, its former chief financial officer, who left the company with effect from July 31. It said the process of selecting a successor would probably start at the end of the year or the beginning of next year.