Sands China profit soars 52 percent

Sands China Ltd posted profit of US$467.0 million (US$3.7 billion) in the fourth quarter of last year, up by a staggering 52.3 percent in comparison with the same period of 2011, the company said today, after parent company Las Vegas Sands Corp announced its results for the same period last night. On a U.S. GAAP basis, total net revenues for Sands China increased 48.1 percent to US$1.97 billion. Adjusted property EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by 44.1 percent to US$619.9 million in the fourth quarter of 2012. “We delivered record financial results, with outstanding growth and strong operating momentum reflected in every segment of our business,” company chairman Sheldon Adelson said in a statement. “We welcomed a record 11 million visitors to our Cotai Strip properties during the quarter, including five million in the month of December,” he added. Mr Adelson also said the company is targeting to open its latest project in Cotai – The Parisian – in late 2015. In a conference call, he added that Sands China expects to spend approximately US$700 million cash during 2013 and 2014 on the Parisian, with the balance of the US$2.6 billion project to be financed. In response to a question concerning the company’s strategy with respect to the disposal of its retail mall assets in Macau, Sands China officials said that no decision has been made yet. The company is meanwhile pursuing the development of an additional 74,300-square-metre shopping centre on Cotai and is awaiting government approval. The Parisian will include a 27,900-square-metre shopping centre. Mr Adelson also said all Sands China’s hotel rooms are fully booked for the Lunar New Year period. Commenting on Sands China’s fourth quarter results, analysts Grant Govertsen and Felicity Chiang admitted they were above expectations. The two analysts raised their price target for Sands China to HK$44 (US$5.7) from HK$35 and maintained their “Buy” rating. “We continue to remain bullish on shares of Sands China, particularly over the next three years as the company will enjoy its dominant position on Cotai, with significantly more supply (rooms, retail, tables, slots) than its peers – all during a period that should see exceptional growth of the mass market and slots segment market-wide.”