We were way above the Street for Macau and Singapore and they blew us away. We will have commentary in an upcoming post.


"We are incredibly pleased to report that records for revenues, adjusted property EBITDA and adjusted property EBITDA margin were achieved during the third quarter of 2010. Strong revenue growth and increases in operational efficiency in Macau and outstanding results at Marina Bay Sands in Singapore contributed to substantial margin expansion and industry-leading financial performance overall.  We are therefore extremely proud to deliver an all-time quarterly record of $334.6 million of adjusted property EBITDA for our Macau operations, with both The Venetian Macao and Four Seasons Hotel Macao and Plaza Casino delivering substantial revenue and adjusted property EBITDA growth and margin expansion. In Las Vegas, increases in gaming volumes and hotel revenues allowed us to deliver $58.3 million of adjusted property EBITDA during the quarter."

"In Singapore, Marina Bay Sands, which just completed its first full quarter of operations, generated the highest quarterly adjusted property EBITDA and EBITDA margin from any single property in the history of our company. Marina Bay Sands produced $241.6 million of adjusted property EBITDA and an EBITDA margin of 49.7% during the quarter. Both gaming volumes and visitation to the property have continued to trend upward since our opening, and we are gratified by the overwhelming reception the property has received. One example of that growth is the increase in average daily adjusted property EBITDA of over 275% from May to October. We are proud that Marina Bay Sands has already enhanced Singapore's reputation as an international business and leisure destination. Looking ahead, we are confident that Marina Bay Sands will provide an ideal platform for strong growth and outstanding returns for our company."


- Sheldon Adelson, chairman and CEO



  • Annualized EBITDA run rate now in excess of $3BN, higher than the previous target for $3BN EBITDA for 2011
  • Net revenue will increase 12% from Sept to Oct
  • EBITDA climbed by more than 73% from the beginning of June to the end of September; and the trend continues into October where they are on pace to grow an additional 31% from September to October.
  • Low hold negatively impacted revs by 20MM for MBS
  • MBS
    • GGR has increased to 126% since May reaching 8.4 million per day in October; that's an annualized run rate of 3.1 billion. Rolling volumes have increased 182% since May to reach 168.3 million per day in October. At that rate, 42 billion annually approximately. 
    • GGR from our mass tables and slots increased 49% since May to reach 3.2 million per day in October and an annual run rate of 1.2 billion. Non rolling drop increased 21% since May to 9.6 million per day in October; an annual run rate of 3.5 billion. Slot handle increased 165% to reach 18.3 million per day in October; that is 6.7 billion annual. 
    • The slot WPD increased 43% since May to reach $517 per unit per day so far in October. Annual run rate is approximately $450 million.  
  • Strong Golden Week for Sands China; run pace for October will be a record
  • Completion of Bethlehem hotel next spring
  • Very judicious and prudent in lending credit in S'pore
  • Continue to focus on EBITDA as metric of performance; want people not to focus on market share
  • 35%-40% EBITDA share of Macau market
  • $3.2 BN in excess cash; about $6BN if including unused revolver




  • EBITDA for Oct for MBS: up 40% from Sept EBITDA
  • GGR 8.4 MM per day in October - annualized rate 3.1BN.
  • Rebate: 1.2%-1.3%
  • Retail - still not completely open, but most stores (ex. LV) will be open by end of year; run rate going north. Only delay is health club/spa.
  • Customer mix: the top high-rollers are very diverse e.g. (Laos, Cambodia)... but Singapore, Malaysia, and Indonesia customers still largest portion; HK and China also well-represented.
  • Still understaffed in terms of target of 8,400 people; so payroll expense will increase.
  • Mass market and slot play will increase as participation in hotel increases; big Indian promotion in January;
  • Table/slot capacity: still have more room to add tables/slots; focus on adding private gaming rooms (VIP); enough capacity in mass market; 
  • Receivables: very conservative; a couple of hundred million in receivables; 12% reserved.
  • Junket operators: Adelson thinks only those who have no track record will get approved (i.e. not Macau-style junket reps)
  • Chinese currency impact: helped by stronger S'pore $, expect positive impact to continue into 2011 
  • Gross Revenue share going forward: will be equal; focus on high-end of the market (Genting doing very well on the mass side)
  • Could hit $2BN EBITDA in 2012
  • Local S'pore: 38% of total customers
  • 25,000 customers on average
  • High 90% occupancy in MBS during the weekend; 80s in the weekdays
  • In 2012, subway system will open, which will help the retail side
  • Did have Mainland China customers during Golden Week
  • Depreciation will creep up in 4Q
  • Rolling tables: 110
  • Non-rolling tables: 500

Other Questions

  • FS EBITDA margin: high % of high-end win; approaching Sands Macau #s; expecting property improvements and adding amenities to FS.
  • Sites 5 & 6: still on target; budget remained same; still looking 4Q 2011 for phase 1 opening; but will know in 30 days if that is still a feasible date given # of workers; all contracts have been resolved;
  • Sands Macau: most affected by competition on the peninsula; have already paid back the cost of the property.
  • Japan--interparty draft is moving forward, should be submitted to Diet by February.
    • 2 casino sites: Tokyo and Osaka
    • currently, 12-13k pachinko parlors
  • Receivable reserve account: 42% against gross casino AR
  • Expansion of McCarran airport impact: additional capacity will not have any impact; lift is the single most important factor; 800,000 less passengers coming into airport this year;
  • FS Apartment Sale - hope they will get approval soon; "about to get it"; will bring in up to $1.4BN
  • Vegas environment for 2011: group bookings are strong; group rates still weak - ADR $180-$190 for 2011; $200 ADR for October, though; doesn't expect big numbers in 2011
  • LV promotional environment: still very competitive; believes gaming and hotel promotional environment has gotten worse and will continue to worsen; LVS will cut back on offers to protect brand; will cut to 10% from 15% for % of promotion.
  • Govt may lower tax rate in Macau in the future
  • Oct visitation so far is normal
  • annualized sales/sq ft in 3Q dropped 25% in Macau retail sales.
  • Will keep direct VIP business where it is: 25%
  • Capitalized interest: 32MM; will go up in subsequent quarters due to construction in Macau

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