This casino gaming and entertainment resort company earns a better part of its revenues from Macau. Share price of the company fell approximately 3% in aftermarket hours as weak results for the third consecutive quarter disappointed investors.
In the quarter, net revenue declined 20% year over year to US$ 1.12 billion and also missed the consensus mark of US$ 1.14 billion by 1.5%. The sluggish revenues reflect lower group-wide rolling chip revenues and mass market table games revenues.
The downside reflects a slowdown in Macau gambling growth as a result of high-stake gamblers curtailing spending amid a cooling Chinese economy. The region has struggled owing to the anti-graft corruption drive, which has lowered footfall at the casinos. Also, credit growth concerns, tighter restrictions on visas, smoking ban in casinos and protests in Hong Kong have adversely impacted revenues generated from the region. Gross gaming revenues in Macau declined in double digits in all three months of the quarter. In fact, gross gaming revenues have gone downhill since Jun 2014.
Adjusted Property EBITDA was US$ 278.6 million, down 29% year over year owing to lower group-wide rolling chip volumes and rolling chip win rate, and lower contribution from the mass market table games segment. Adjusted earnings before interest, tax, depreciation and amortisation fell by nearly 30 percent to US$ 278.6 million.