The Sands China Limited subordinate of American casino giant, Las Vegas Sands Corporation, is likely to retain its position as the ‘largest operator’ in Macau’s mass-market gaming industry over the course of the next five years.

Adept analysis:

According to a report from GGRAsia, this is the opinion of the Asian branch of global brokerage firm Sanford C Bernstein and Company and comes after November saw the casino operator acquire an unsecured revolving credit facility from a syndicate of lenders worth some $2 billion.

Impressive portfolio:

Sands China is responsible for The Venetian Macao, The Plaza Macao, Sands Macao and The Parisian Macao properties while it unveiled a $1.35 billion plan in 2017 that is to see its nearby Sands Cotai Central venue rebranded as The Londoner Macao. Sanford C Bernstein and Company reportedly declared via a Monday filing that the Hong Kong-listed casino firm is also expected to remain as a ‘non-gaming leader’ in Macau with its refurbishment programs likely to serve as a ‘catalyst’ for increasing cash flow and profitability in 2020 and 2021.

Revenues giant:

The brokerage reportedly stated that Sands had accounted for ‘over 23.3%’ of Macau’s aggregated gaming revenues in the twelve months to the end of March while its mass-market tally stood at ‘over 29%’. It purportedly detailed that the casino firm’s closest rival was Galaxy Entertainment Group Limited with a score of 22% and 18% respectively.

Reportedly read the filing from Sanford C Bernstein and Company…

“As the mass segment is a more profitable business, Sands China Limited has the highest earnings before interests, taxation, depreciation and amortization among all Macau casino operators on the favorable business mix.”

Room inventory:

GGRAsia reported that Sands’ adjusted property earnings before interest, tax, depreciation and amortization last year were 4.7% above the Macau industry average at 35.4% while the firm’s stable of around 12,000 hotel rooms accounted for approximately 48% of those offered by all of the casino operators in the former Portuguese enclave.

The filing from Sanford read…

“Hotel room supply is critical to attracting overnight visitation and growing the mass-market business. As such, Sands China Limited’s dominant position in mass-market is expected to continue into the foreseeable future.”