GGRAsia – Parisian to replicate Venetian Macao’s success: Adelson

Parisian to replicate Venetian Macao’s success: Adelson

Feb 22, 2016 Newsdesk Latest News, Macau, Top of the deck

The chairman and chief executive of Macau gaming operator Sands China Ltd, Sheldon Adelson (pictured), said that the company’s under construction new resort on Cotai will follow on the success of sister property Venetian Macao.

“I am confident that the Parisian Macao will both replicate the success of the Venetian Macao as another themed, iconic and must-see integrated resort destination for Macau’s visitors, while expanding the overall business and leisure tourism appeal of Macau,” Mr Adelson said.

His comments were included in a Friday statement to company shareholders featured in Sands China’s 2015 annual results announcement. Parent Las Vegas Sands Corp already had disclosed its full year 2015 results in January, including those of Sands China.

“With the opening of the Parisian Macao in 2016, Sands China will have invested in excess of US$13.0 billion to deliver on our promise to contribute to Macau’s diversification and success as Asia’s leading business and leisure tourism destination,” Mr Adelson added in his Friday statement.

The Parisian Macao features a scale replica of the Eiffel Tower, with a restaurant and observation decks. The property will include 3,000 hotel rooms and a casino.

Sands China also confirmed in Friday’s announcement that the deadline for completion of the Parisian Macao had been extended to November. Under Sands China’s land concession for the scheme, the company was required to complete the development of the project by April 2016, the firm had said in previous filings.

The US$2.7-billion property is scheduled to launch in the latter part of this year. On a conference call with investment analysts in January, Mr Adelson said the firm was targeting a September opening.

In his Friday statement, Mr Adelson highlighted Sands China’s ability to produce a “strong set of financial results” in 2015, albeit the market wide slump in casino gross gaming revenue (GGR) in Macau.

The Macau casino operator reported net revenues of US$6.8 billion for the year ended December 31, 2015, a year-on-year decrease of 28.2 percent. Casino revenue was down 31.4 percent from 2014 to US$5.7 billion. Profit declined 42.7 percent to US$1.5 billion.

Macau’s market wide GGR in 2015 decreased 34.3 percent compared to the previous year, according to official data.

“Despite all the headwinds and challenges in 2015, and the arrival of new competition, the Venetian Macao… was the only property in Macau to exceed US$1.0 billion in EBITDA [earnings before interest, taxation, depreciation and amortisation],” Mr Adelson said. The property generated adjusted EBITDA of US$1.1 billion in 2015, a year-on-year decline of 30.1 percent.

The properties under Sands China’s portfolio – Sands Macao, Venetian Macao, Plaza Macao and Sands Cotai Central – welcomed a combined total of more than 68 million visitors last year, Mr Adelson stated.