Adjusted property ebitda for a quarter of US$307bn would have been unthinkable a year ago. No longer. Sands China did just that, surpassing the most bullish forecasts by analysts thanks to an impressive widening of margins across all three of its Macau properties in 2Q. The Sands Macao did US$81m on a margin of 26.9%; the Venetian Macao did US$192.8m on a margin of 33.2%; and the Plaza Macao (Four Seasons) did US$33m on an incredible 49% margin. That, ladies and gents, is the difference of non-junket play: as percentage of total rolling-chip turnover, premium-direct accounted for nearly 25%.

It’s also the difference of non-gaming contributions. Casino revenue at the Venetian was US$500m during the period. Non-gaming revenue, a non-factor elsewhere in Macau, was nearly US$100m at the property.

However, there can be little doubt about who the real star of this quarter was. Without the contribution of the Plaza, with Andrew Billany at the reins and Kevin Clayton riding shotgun as group head of marketing, there might not have been as much to crow about. The ultra-luxurious property had an eye-popping month in June, when it was the only place in Macau to see revenues rise month-on-month from May. On a nearly 50% margin, that made a big difference at the finish line for the quarter.

The question is whether Sands China can keep the momentum going. We think it probably can. The Venetian has been having a great July on its mass floors and should do well again in August, as it does every summer. The Plaza seems to have found the right groove with high-rollers. And there is still significant room for improvement at Sands Macao on the peninsula. As mentioned yesterday, though, the new executives coming in next month will need to handle this baby with care. The machine ain’t really broke, it don’t really need fixing. Just a bit of fine-tuning should do.

Used with permission & copyright to IntelMacau