Macau Bets Paying Off for US Companies
The rapid growth of gambling in China's Macau region is bolstering the bottom line of U.S. gaming companies.
Sands China Ltd., the subsidiary of Las Vegas Sands, this week reported that net profit rose 63.3 percent from a year earlier to $452.9 million, thanks in large part to the opening last year of the Sands Cotai Central.
Meanwhile MGM China, the Macau arm of MGM Resorts International, reported net revenue increased six percent over the same period a year ago. MGM attributed the growth to an increase in revenue from table games and slots, as well as a 15 percent jump in revenue from VIP table games.
Overall, Macau gambling revenues were up 14 percent in the quarter compared to a year ago, Aaron Fischer of CLSA, a Hong Kong consultancy, told the Financial Times
Occupancy rates in Macau hotels are running at about 95 per cent, while the average minimum bet on gaming tables has increased in the past 12 months from HK$300 to HK$600, Mr Fischer added.
In March Macau generated a record $3.92 billion in gambling revenue, a 25.4 percent increase from the same period a year ago, according to the Macau Gaming Inspection and Coordination Bureau.
"In Macau, we delivered record financial results, with outstanding growth and strong operating momentum reflected in every segment of our business," said Sheldon Adelson, chairman of Las Vegas Sands, in a company release.
Mr. Adelson said the group's resorts on the Cotai Strip had attracted 14 million visitors in the quarter. He also said the Parisian Macau, which is expected to include a model of the Eiffel Tower, may open in late 2015, earlier than expected.
Last October, MGM Resorts International reached an agreement
to build a 1,600-room hotel with 500 gaming tables on a 17.8 acre site in Cotai.