Overview
- Shares fell about 7% in Thursday trading following Wednesday’s earnings release as investors focused on Macao profitability.
- The company beat expectations with $3.58 billion in revenue and adjusted earnings of $0.91 per share.
- In Macao, EBITDA was $608 million at a 28.9% margin, and management is targeting $700 million per quarter under a low-30s margin model.
- Executives said margins were squeezed by a bigger share of VIP rolling play, heavier promotions, event costs, and recent wage increases, and they noted VIP wagering earns less per dollar than base mass play.
- Singapore’s Marina Bay Sands delivered $806 million of EBITDA at about a 50% margin, as the company also repurchased $740 million of stock and paid a $0.30 dividend.