- Consolidated Adjusted EBITDA increased 20.9% to US$450.5 million(HK$3,498.0 million)
- The Venetian Macao and The Plaza Macao generated record Adjusted Property EBITDA; delivered increases of 23.6% and 17.8% respectively
- Total Net Revenues increased 25.1% to US$1,445.1 million (HK$11,220.8 million)
- Net Income increased 6.4% to US$279.3 million (HK$2,168.7 million)
- Interim Dividend of US$0.075 (HK$0.58) per share paid in February; amounted to US$599.8 million (HK$4.67 billion) in aggregate
- Board of Directors proposes Final Dividend of US$0.075 (HK$0.58) per share, subject to approval by Shareholders in the forthcoming Annual General Meeting
(Macao, May 9, 2012) – Sands China Ltd. (HKSE: 1928) announced today the unaudited consolidated results of the Company and its subsidiaries, prepared in accordance with International Financial Reporting Standards (“IFRS”) for the fiscal first quarter ended March 31, 2012. On an IFRS basis, total net revenues for Sands China Ltd. increased 25.1% to US$1,445.1 million for the first quarter of 2012, compared to US$1,155.3 million for the first quarter of 2011. Adjusted EBITDA for Sands China Ltd. increased 20.9% to US$450.5 million for the first quarter of 2012, compared to US$372.7 million for the first quarter of 2011. Net income for Sands China Ltd. increased 6.4% to US$279.3 million for the first quarter of 2012, compared to US$262.4 million for the first quarter of 2011. Sands China Ltd. is pleased to report record financial results for the first quarter of 2012. We set quarterly records for adjusted property EBITDA and gaming volumes during the quarter. The Venetian Macao First Quarter Operating Results The Venetian Macao continued to enjoy strong visitation and financial performance. The property delivered record adjusted property EBITDA of US$282.1 million, an increase of 23.6% compared to US$228.2 million for the first quarter of 2011. Adjusted property EBITDA margin was 36.6% in the first quarter of 2012. The Venetian Macao delivered solid growth in gaming volumes in each segment of the business. Non-Rolling Chip drop was a record US$1.11 billion for the quarter, an increase of 12.7% compared to the same quarter last year, while Non-Rolling Chip win percentage was 30.7%. Rolling Chip volume during the quarter increased 11.4% to a record US$13.80 billion. Slot handle was a record US$1.24 billion, an increase of 67.0% compared to the quarter one year ago. RevPAR increased 15.7% to a record US$228 due to higher ADR and occupancy.
Sands Macao First Quarter Operating Results
Sands Macao’s adjusted property EBITDA increased 16.0% to US$106.7 million with adjusted property EBITDA margin of 30.7%. Non-Rolling Chip drop increased to US$707.8 million, the strongest performance since the first quarter of 2008. Slot handle increased 52.1% to a record US$663.2 million. Rolling Chip volume was US$6.43 billion for the quarter while Rolling Chip win percentage for the quarter was 3.73%.
The Plaza Macao First Quarter Operating Results
The Plaza Macao generated record adjusted property EBITDA of US$67.5 million in the first quarter of 2012, an increase of 17.8% compared to US$57.3 million for the first quarter of 2011. Rolling Chip volume reached a record US$12.70 billion for the quarter, an increase of 221.8% compared to the first quarter of 2011. Slot handle continued to expand, reaching US$198.2 million, an increase of 5.7% compared to last year’s first quarter. Non-Rolling Chip drop increased to US$105.9 million while Non-Rolling Chip win was up 33.7% compared to the year-ago quarter. The non-gaming offerings of the property continued to exhibit healthy growth, with increase in occupancy and RevPAR, while mall revenue was US$10.5 million, a 98.1% increase compared to last year’s first quarter.
Other Factors Affecting Earnings
Our other operations’ adjusted EBITDA, which is principally composed of our CotaiJet ferry operation, was negative US$5.8 million in the quarter. Corporate expense was US$6.7 million in the first quarter of 2012, compared to US$7.5 million in the first quarter of 2011.
Pre-opening expenses, related primarily to Sands Cotai Central on the Cotai Strip, increased to US$51.4 million in the first quarter of 2012, compared to US$6.8 million in the first quarter of 2011. The increase was primarily related to the increased pre-opening activities and headcount on Sands Cotai Central, which opened its first phase in April 2012. Depreciation and amortization expense was US$62.8 million in the first quarter of 2012, compared to US$71.5 million in the first quarter of 2011. The decrease was primarily due to some assets becoming fully depreciated since the first quarter of 2011.
Interest expense, net of amounts capitalized, was US$9.0 million for the first quarter of 2012, compared to US$20.5 million for the first quarter of 2011. The decrease was principally the result of a lower average borrowing cost after completing a US$3.7 billion refinancing in November 2011. Capitalized interest, which was related to the Sands Cotai Central project, was US$22.6 million during the first quarter of 2012, compared to US$29.2 million during the first quarter of 2011. The decrease was as a result of decreased interest expense during the quarter.
The Group recorded an impairment loss of US$42.9 million related to the closing of the entertainment show ZAiA at The Venetian Macao. Sands China Ltd. has filed the full set of results on the Stock Exchange of Hong Kong Limited and Company websites. Please see attached for reference.
###
About Sands China Ltd.
Sands China Ltd. (HKSE: 1928, Sands China or Company) is a subsidiary of global resort developer Las Vegas Sands Corp. (NYSE:LVS), and a listed company on the Stock Exchange of Hong Kong Limited. Sands China is the largest operator of integrated resorts in Macao. The Company owns and operates THE VENETIAN® Macao-Resort-Hotel, THE PLAZA™ Macao and SANDS® COTAI CENTRAL at the COTAI STRIP® development and SANDS® Macao Hotel on the Macao peninsula. The Company’s integrated resorts contain a diversified mix of leisure and business attractions and transportation operations, including large meeting and convention facilities, a wide range of restaurants, shopping malls, world-class entertainment at the CotaiArena™ and high-speed CotaiJet™ ferry service between Hong Kong and Macao. The Company’s property development projects on Cotai have the goal of transforming Cotai into Asia’s premier entertainment and business destination. For more information, please visit www.sandschinaltd.com.