Macau casino operator Sands China Ltd saw its adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) fall by 6.7 percent quarter-on-quarter, to US$610 million, from US$654 million in the final three months of 2023. The result was up 53.3 percent from a year earlier, when restrictions linked to Covid-19 were relaxed in Macau, Hong Kong and mainland China.

On a United States GAAP basis, the firm’s net revenue fell 2.8 percent sequentially in the first quarter, to US$1.81 billion, according to an announcement filed on Thursday in Hong Kong, following the parent’s Wednesday results. Revenue rose by 41.6 percent in year-on-year terms.

Nonetheless Sands China’s net income rose 3.1 percent quarter-on-quarter, to US$297 million. The company had a net loss of US$10 million in first-quarter 2023.

“If we had held as expected in our rolling programme, our EBITDA would have been higher by US$31 million,” stated the parent Las Vegas Sands Corp, referring to VIP play.

Andrew Lee, an analyst at Jefferies Hong Kong Ltd, stated in a Thursday note, citing management discussion : “The lower earnings were due to property renovations at the Londoner [Macao], Cotai Arena closure, and significantly lower earnings at The Plaza and Sands Macao.”

Mr Lee added, referring to the British-themed Cotai property the Londoner Macao: “As the renovation disruptions persist this year, we expect this will continue to impact earnings.”

At Las Vegas Sands’ other Asian operation, Marina Bay Sands in Singapore, hold on the rolling programme worked in the group’s favour.

Marina Bay Sands first-quarter adjusted property EBITDA was US$597 million, up 9.7 percent on the fourth quarter’s US$544 million. Las Vegas Sands said the property “once again delivered record levels of financial and operating performance”.

“High hold on rolling play at Marina Bay Sands positively impacted adjusted property EBITDA by US$77 million,” noted the parent in a Wednesday filing in the U.S.

The Singapore operation’s net revenue rose 9.1 percent sequentially in the first quarter, to nearly US$1.16 billion.

Las Vegas Sands paid a quarterly dividend of US$0.20 per common share during the first quarter. The parent’s next quarterly dividend of US$0.20 per common share will be paid on May 15. Sands China is yet to resume dividend payments.

Londoner, Venetian Macao rolling down q-o-q

In terms of the detail of the group’s first-quarter performance, in the Macau market the rolling chip programme mentioned by the group saw a 19.1 percent fall quarter-on-quarter in rolling chip volume at The Londoner Macao.

Such rolling chip volume was just under US$1.88 billion, versus US$2.32 billion in the fourth quarter last year.

At The Venetian Macao (pictured), the first-quarter rolling chip volume was just under US$1.04 billion, down 17.0 percent on the fourth quarter.

Grant Chum, president and chief executive of Sands China, stated on the parent’s first quarter earnings call: “VIP revenues in the [Macau] market as a whole grew faster than the mass revenues in the first quarter.”

First-quarter mass-market revenues “grew sequentially around 4 percent, and the overall GGR for the quarter grew 6 percent sequentially,” he noted.

At Marina Bay Sands, first quarter rolling chip volume was US$8.24 billion, up 13.8 percent on the preceding fourth quarter’s US$7.24 billion.

Las Vegas Sands’ group wide first-quarter net revenue was US$2.96 billion, up 1.4 percent from US$2.92 in the fourth quarter.

Robert Goldstein, chairman and chief executive of the parent stated in prepared remarks: “In Macau, the ongoing recovery continued during the quarter.”

He also noted: “In Singapore, Marina Bay Sands once again delivered record levels of financial and operating performance.

“Our new suite product and elevated service offerings position us for additional growth as airlift capacity continues to improve and travel and tourism spending in Asia continues to advance.”

The group CEO added: “We repurchased US$450 million Las Vegas Sands shares under our share repurchase programme during the quarter.

“We look forward to utilising our share repurchase programme to continue to return excess capital to stockholders in the future.”