Weak high-roller business hits Marina Bay Sands; third quarter profits fall to US$351.7m

Marina Bay Sands posted profits of US$351.7 million for the third quarter ended Sept 30 as revenue from casino operations slowed due to weakness in the high-roller business. -- PHOTO: ST FILE
Marina Bay Sands posted profits of US$351.7 million for the third quarter ended Sept 30 as revenue from casino operations slowed due to weakness in the high-roller business. -- PHOTO: ST FILE

SINGAPORE - Marina Bay Sands posted profits of US$351.7 million for the third quarter ended Sept 30 as revenue from casino operations slowed due to weakness in the high-roller business.

Profits or Ebitda (earnings before interest, tax, depreciation and amortisation) were 5.9 per cent down from the third quarter in 2013. This was also a sharp drop from the second quarter where profits of US$417.8 million had been registered.

However, aside from casino operations, other segments such as hotel rooms, food and beverage and the mall showed improvement.

Macquarie Equities Research wrote in a note on Friday morning that "a decline in Chinese tourists is having a big impact" as they form a large part of the VIP business.

Macquarie sees Marina Bay Sands as having a lead over Genting Singapore particularly in the mass market segment and that the latter may see a large decline in volumes.

Genting Singapore shares which had sunk to a four-year low on Thursday was another 0.5 cent lower at $1.055 in early morning Friday trade.

sushyan@sph.com.sg