Sands faces headwinds after record first half
Macau casino operator reports 35.7 per cent jump in first-half earnings, but sharp fall in mass gaming and hotel project delay cloud prospects
A record-breaking first half for Macau casino operator Sands China could mask the risk of a sudden slowdown in the second half of the year as the mass gaming segment drops off and construction remains halted on the company's new Cotai resort.
Revenue rose 24.7 per cent to US$5.08 billion, while net profit jumped 45.7 per cent to US$1.37 billion.
Shares of Sands ended 0.19 per cent higher at HK$53.25 yesterday in a market that rose 0.62 per cent.
As the Macau casino operator with the largest capacity, both in terms of gross gaming area and number of hotels, Sands has been among the top picks of many analysts in the supply-constrained market.
As the mainland's anti-graft campaign, concerns over junket liquidity and crackdown on UnionPay started to weigh down on the VIP segment, Sands, with its mass focus exemplified by flagship property the Venetian, enjoyed brisk business, outperforming its rivals over the critical Lunar New Year period.
However, the company faces considerable headwinds in the second half. Mass table revenue growth slowed sharply last month, to 17 per cent year on year from an average 35 per cent for the first half.