Sands retail profits soar
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Macao’s gambling downturn may be impacting on casino operators’ bottom lines – but retailing is on the rise.
Las Vegas Sands, which owns The Venetian Macao, Four Seasons Macao and Sands Cotai Central shopping malls in Macau – and the Marina Bay Sands in Singapore – has reported an 18.2 per cent lift in profits from its Asian retail operations year on year for the quarter to June 30.
Gross revenue from tenants in the company’s malls on the Cotai Strip and at Marina Bay Sands, reached US$134.4 million for the second quarter of 2015, an increase of 13.6 per cent compared to the second quarter of 2014.
“Operating profit derived from these retail mall assets increased 18.2 per cent for the quarter compared to the quarter one year ago, reaching $119.4 million,” the company said in its quarterly financial statements filed in the US.
The company says that despite the softer gaming market in Macao, The Venetian Macao “continued to enjoy Macao market-leading visitation and financial performance”.
“The property generated adjusted property EBITDA of $255 million in the second quarter with an EBITDA margin of 34.5 per cent.”
Mall revenues of The Shoppes at the Venetian Macao increased 14.9 per cent during the quarter to reach $48.5 million.
The Shoppes at Four Seasons – 100 per cent leased at the end of the quarter – brought in $31.1 million in gross revenue and turned an operating profit of $29.2 million, giving an operating profit margin of 93.9 per cent.
The Shoppes at Cotai Central brought in $14.6 million and a profit of $12.6 million. That mall was 97.8 per cent leased.
And in Singapore, The Shoppes at Marina Bay Sands, 93.6 per cent leased at period end, brought in $40.4 million of revenue for the quarter and a profit of $34.5 million, for an operating profit margin of 85.4 per cent.
Tenant sales per square foot were $5589 in the luxury section of the Four Seasons property, $2646 in the non luxury section; at the Venetian Macao $1578, at Cotai Central $1004. Marina Bay, by comparison, reached $1393.
The overall Asian retail operation achieved $1789 per square foot in the quarter to June 30.
Questions & Answers
Q.Which specific retail properties contributed most to the overall increase in gross revenue from Asian tenants?
Which specific retail properties contributed most to the overall increase in gross revenue from Asian tenants?
The Shoppes at The Venetian Macao generated the highest gross revenue at $48.5 million for the quarter. The Shoppes at Four Seasons followed with $31.1 million, and Marina Bay Sands brought in $40.4 million.
Q.How did the operating profit margin for The Shoppes at Four Seasons compare to other retail locations mentioned?
How did the operating profit margin for The Shoppes at Four Seasons compare to other retail locations mentioned?
The Shoppes at Four Seasons had an operating profit margin of 93.9 per cent, which is the highest reported. Marina Bay Sands had an 85.4 per cent margin, and Cotai Central was not explicitly stated but implied to be lower.
Q.What were the tenant sales per square foot figures for the luxury and non-luxury sections of the Four Seasons property?
What were the tenant sales per square foot figures for the luxury and non-luxury sections of the Four Seasons property?
Tenant sales per square foot in the luxury section of the Four Seasons property were $5589. The non-luxury section of the same property recorded tenant sales of $2646 per square foot.
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