Sands China Leading Macau Gaming Market In Q2
Sands China Ltd emerged as a leader in the Macau casino industry in the second quarter, driving mass market and VIP gross gaming revenue (GGR) as well as adjusted earnings from holdings before interest, taxation, depreciation and amortization (EBITDA). The earnings follow a detailed analysis by banking group JP Morgan, which came after the earnings season peaked on interim earnings from SJM Holdings Ltd.
Market Share Insights:
JP Morgan’s review was coordinated to report discrepancies between Macau regulators and operators in relation to the mass market to the VIP GGR split. They estimated that Sands China led a 24.5% share of the mass market GGR. However, a note from Deutsche Bank Securities described Sands China as ceding market share to rivals year-over-year and sequentially in the mass market segment.
JPMorgan pointed to a 21.2% share of Sands China within the six concession air framework for the quarter ending June 30 in the VIP segment. On the contrary, Deutsche Bank recognized Sands China as an increase in VIP share compared to the prior year and quarter.
Regarding withholding adjusted real estate EBITDA, JPMorgan put Sands China’s market share at 28.9% from April to June. However, according to Deutsche Bank’s analysis, Sands China gave up some EBITDA share to its rivals year-over-year and quarter-over-quarter. Notably, Sands China had adjusted real estate EBITDA of $561 million for the quarter, up 3.7% year-over-year, but decreased 8.0% sequentially.
Competitors and Market Dynamics:
Galaxy Entertainment Group Ltd came in second place in all three categories: mass table GGR (18.9%), VIP table GGR (21.0%), and hold-adjusted EBITDA (20.9%). Macau’s Gaming Inspection and Coordination Bureau reported that the mass market segment generated revenue of just under MOP $43.12 billion ($5.36 billion), accounting for 76.4% of the total GGR for the quarter. VIP Baccarat held a 23.6% share, with revenue slightly above MOP $13.31 billion.
Industry-wide GGR and Recovery:
JPMorgan analysts Joe Greff, Samuel Nielsen, and Ryan Lambert highlighted that industry-wide GGRs reached 78% of levels seen in Q2 2019, with a sequential 2-percentage point increase, according to GGRAsia. They noted that the recovery rate of mass table GGRs stood at 116%, up 1 point from the previous quarter. By contrast, VIP GGR remained at 23% of 2019’s figure, with slot GGR down 1 point to 100% in 2019.
Deutsche Bank’s Carlo Santarelli reported an industrial margin of 28.2% for the quarter, slightly lower than the 29.3% observed in the second quarter of 2019 and a 14% drop in net income from 2019 levels. 파워볼사이트