The principal activities are the development and operation of integrated resorts in Macao, which contain not only gaming areas but also meeting space, convention and exhibition halls, retail and dining areas and entertainment venues.
The Group's profit attributable to shareholders for the 6 months ended 30-06-2019 amounted to USD 1.07 billion, an increase of 9.0% compared with previous corresponding period. Basic earnings per share was USD 0.132. No dividend declared. Turnover amounted to USD 4.47 billion, an increase of 4.8% over the same period last year, gross profit margin up 0.3% to 59.6%. (Announcement Date: 09 Aug 2019)
Business Review - For the six months ended June 30, 2019
Net revenues were US$4.47 billion for the six months ended June 30, 2019, an increase of 4.8%, compared to US$4.27 billion for the six months ended June 30, 2018. Net revenues increased in the majority of business categories, mainly driven by ramp-up of The Parisian Macao. We continued to enjoy market-leading visitation in Macao and are focused on driving the high-margin mass market gaming business, while providing luxury amenities and high service levels to our VIP and premium players.
Our net casino revenues for the six months ended June 30, 2019 were US$3.59 billion, an increase of 6.0%, compared to US$3.38 billion for the six months ended June 30, 2018. The increase was primarily attributable to an increase of US$131 million at The Parisian Macao, which was mainly driven by increases in volume in mass gaming as well as higher win percentage in all gaming offerings.
The Venetian Macao
The VIP and premium mass gaming areas in The Venetian Macao will continue to undergo a complete refurbishment program which commenced in 2018 and will ultimately provide the best possible service and amenities to our VIP and premium players. Contemporary in style and designed in conjunction with leading design firms, these areas will take full advantage of the space we have available and allow us to feature a range of gaming and non-gaming facilities including an increased number of private gaming rooms. Construction is expected to be completed in phases throughout 2020.
The Plaza Macao
We previously announced the Four Seasons Tower Suites Macao, which will feature approximately 290 additional premium quality suites. We have completed the structural work of the tower and have commenced preliminary build out of the suites. We expect the project to be completed in the first quarter of 2020. With the Plaza Level 2 renovation project completed in 2018, we have now commenced concept design work for Plaza Level 1, which is expected to feature a complete upgrade of the space.
The Parisian Macao
A number of standard rooms in The Parisian Macao were combined and upgraded to suites to better cater to the changing customer demand in premium mass products. The new suites have been very well received by our guests.
Sands Cotai Central
We previously announced the renovation, expansion and rebranding of Sands Cotai Central into a new destination integrated resort, The Londoner Macao, by adding extensive thematic elements both externally and internally. The Londoner Macao will feature new attractions and features from London, including some of London’s most recognizable landmarks such as the Houses of Parliament and Big Ben. The expanded retail will be rebranded to the Shoppes at Londoner and we will add new food and beverage venues. We will add approximately 370 luxury suites within the tower also occupied by the St. Regis hotel. Design work is nearing completion and construction is being initiated and will be phased to minimize disruption during the property’s peak periods. We expect the additional suites within the tower also occupied by the St. Regis hotel to be completed in late 2020 and The Londoner Macao project to be completed in phases throughout 2020 and 2021.
Smoking Lounges in Gaming Areas
The Macao Legislative Assembly passed an amendment bill on July 14, 2017, which has come into force on January 1, 2019, making all casino areas non-smoking and mandatory for casinos to upgrade or set up smoking lounges. Consequently, a number of new and upgraded smoking lounges have been constructed across all of our properties to comply with the required enhanced technical standards, and all rooms submitted to the government have received the appropriate regulatory approvals. As part of the design process for new projects, we will include where appropriate the addition of new or enhanced smoking lounges.
Business Outlook - For the six months ended June 30, 2019
Our business strategy is to develop Cotai and to leverage our large-scale integrated resort business model to create Asia’s premier gaming, leisure, convention and meetings destination. The Company continues to execute on the strategies outlined in our 2018 annual report. These strategies have proven to be successful in the first half of 2019 and we are confident they will continue into the future.
As our integrated resorts mature, we will continue to reinvest in our portfolio of properties to maintain our high-quality products and remain competitive in the markets in which we operate. We are constantly evaluating opportunities to improve our product offerings, such as refreshing our suites, rooms and gaming areas.
Source: Sands China Ltd (01928) Interim Results Announcement