Sands China hit by 14% drop in profits to US$801m

Everybody just got disappointed.

Sands China reported 2Q14 EBITDA of US$801 mn, 6.4% below Bloomberg consensus estimate of US$856.5mn and 8% below Barclays’ US$874 mn estimate.

According to a research note from Barclays, 2Q EBITDA was up 22% y/y and down 14% q/q. Meanwhile, EBITDA adjusted for VIP hold rate was US$752mn, +15% y/y and down 13% q/q.

The report said that management noted there was a US$29mn impact from the initiation of a 14th-month special bonus accrual for employees, and there was a negative impact from a low hold rate in the premium mass segment.

Management noted that without these factors impacting, EBITDA would have been US$850mn.

Here’s more from Barclays:

Mass table revenue growth was the driver at +34% y/y although down 7% q/q to US$1.25bn. Overall mass table hold was slightly lower at 22.4% vs 23.7% in 1Q14 and 24.3% in 2Q13. Mass table count further increased to 1,147 in 2Q14 from 1,124 in 1Q14 and 1,003 in 2Q13; win per mass table per day increased 17% y/y to US$11,963.

VIP volumes saw significant declines at down 16% y/y and down 23% q/q. VIP revenues were down 6% y/y and down 23% q/q at US$1.1bn.

Slot revenues were up 19% y/y and down 3% q/q at US$178mn.

By property: Sands Cotai Central 2Q14 EBITDA was US$249mn, +70% y/y and down 5% q/q. Management expects the newly opened premium mass to continue ramping up and see stronger performance this fall.

Venetian EBITDA was US$402mn, +11% and down 14% q/q.

Four Seasons EBITDA was US$68mn, +10% y/y and down 40% q/q.

Sands Macao EBITDA was US$82mn, down 7% y/y and down 10% q/q.

Parisian to open late 2015: The company continues to guide for a late 2015 opening for the Parisian. The company is looking for the St Regis hotel to open in summer next year.