Nevada-based Las Vegas Sands has posted a year-on-year increase in revenue for the first quarter from its Macau operations. The 2019 first quarter revenues are up by 1.9 percent to $3.65bn. For the same period in 2018, the revenue generated was $3.58bn.
Despite an increase in revenues the net income for Las Vegas Sands has taken a hit. For the first quarter this year, the company has made $744m dipping 54 percent from what it made for the same period the previous year. In 2018, the company had made $1.6 billion for the first quarter.
The company has said that the dip in the operating income is because of “decreases in rolling chip win percentage and volume in Singapore and a nonrecurring legal settlement.”
Chairman and chief executive officer, Sheldon Adelson, said: “We are pleased to have delivered strong financial results in the quarter, led by consistent growth in the mass and non-gaming segments in Macao.”
“Our market-leading integrated resort property portfolio in Macao delivered revenue growth of 13 percent in the high-margin mass gaming table segment, and adjusted property EBITDA of $858m, “ he added.
While the consolidated Ebitda for the Las Vegas Sands Macau operations was 3.2 percent year on year to $1.45 billion from $1.5 billion a year earlier, the company did well in China posting an 8 percent year-on-year increase in net revenue from $2.16 billion to $2.33 billion for the first quarter.
Las Vegas Sands which also owns and operates the Marina Bay sands tower in Singapore is currently expanding the gambling facility. However, earlier this week company officials said that the fourth Marina Bay Sands tower that is being developed would not offer any gambling operations. It will only provide accommodation and dining services.
Talking about the Company’s operations in Singapore, Adelson explained: “At Marina Bay Sands in Singapore, our hotel, retail, convention, and mass gaming segments all exhibited strength, contributing to $423m of adjusted property EBITDA for the quarter. We are also extremely pleased to have reached an agreement with the Singapore Tourism Board to invest an additional $3.3bn to expand our Marina Bay Sands Integrated Resort in Singapore.”
“Our investments will include spectacular new attractions including a state-of-the-art arena designed specifically for live musical entertainment and theatrical performances, a luxurious new hotel tower, additional MICE capacity, and luxury retail,” he added.