MBS adjusted earnings for Q4 down 35 per cent

MBS adjusted earnings for Q4 down 35 per cent

Singapore - Marina Bay Sands (MBS) earnings for the fourth quarter of 2015 have fallen almost 35 per cent to US$338.2 million from a year ago.

This was revealed when the Singapore-based integrated resort's parent, Las Vegas Sands (LVS), posted fourth-quarter sales and profit that missed analysts' estimates as gambling revenue in the key markets of Macau and Singapore declined.

The near 35 per cent drop was in adjusted property Ebitda (earnings before interest, taxes, depreciation and amortisation).

The results come against a backdrop of multiple challenges in the gaming market, which are putting downward pressure on casino revenue.

Net revenue for Q4 fell 16 per cent to US$703.9 million from US$838.6 million, dragged by a 21 per cent decline in casino revenue.

Room and mall revenues were similarly down 4 and 9 per cent respectively.

MBS's hotel segment saw an average occupancy rate of 96.6 per cent, lagging 2014's results by 1.7 percentage points. Average daily rate was down US$30 at US$392, and revenue per available room dropped US$36 to US$379.

But bright spots were found in the food and beverage, as well as the convention and retail segments, which posted revenue increases of 9 and 12 per cent respectively.

MBS maintained its position as the most profitable outift among other LVS properties. MBS posted the highest adjusted property Ebitda margin for both 2014 and 2015. LVS is facing headwinds in Macau and the currency impact of the strong US dollar.

While casino revenues at the IR have declined, rolling chip volume has increased by almost US$70 million from the same period last year.

"Mass win-per-day was US$4.6 million," said LVS chairman and CEO Sheldon G Adelson in an earnings call on Thursday morning.

"When adjusted for the currency effect, our mass win-per-day was up by 6 per cent year-on-year, resulting in our best-ever quarter in mass gaming revenues when measured in Singapore dollars."

Meanwhile, LVS's consolidated net and operating incomes fell almost 31 per cent to US$1.97 billion and US$2.84 billion respectively for the full year of 2015, largely driven by declines in its Macau revenues.

This article was first published on Jan 29, 2016.
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