Q4 2013 Earnings Call Transcript

Transcript Call Date 01/29/2014

Third is, our database of customers continues to expand. We have the ability to further optimize our mass table productivity across our property portfolio. In particular, we will continue to have the ability to increase the utilization of our market leading 9,000 plus hotel room and suite inventory on the Cotai Strip for our most valuable mass gaming customers.

We are pleased that we've expanded on our mass table productivity to $12,143 of mass win per table per day across our Macao property portfolio from just $9,716 per day one year ago. We're confident that we have additional opportunities to optimize our table productivity across the portfolio in the quarters and years ahead.

The VIP business is also exhibiting strong growth with our Rolling Volume increasing 26% to reach a record $49.54 billion. That represents Rolling Volume per table of approximately $1.23 million per day, which was a record for the Company and was up 33.7% compared to the quarter one year ago.

The Venetian Macao delivered another record quarter, and due to our market-leading investments in non-gaming offerings, continues to lead the Macao market in visitation and business and leisure tourism appeal. Our fundamental multi-tiered Integrated Resort development strategy, which features convention, exhibition, hotel, retail and entertainment offerings, helped deliver 17.4 million visits in the quarter to our property portfolio, including over 8 million visits to the Venetian Macao alone.

EBITDA at the Venetian Macao increased to a market leading $433 million in the quarter. When you take 8 million visits per quarter and you multiply that by 4, that's more than the number of individual unique visitors to Macao. When you take 17.4 million, that's the equivalent of – let's see, that's 40, 50 – over 60 million people, I think closer to 70 million people for the year with only 30 million unique visitors arrived in Macao, which means that Venetian Macao is a must see for everybody who comes in, but of course one can conclude that we have 1 million people coming in 32 times or we have 32 million people coming in once each, or likely it's something in between. So when you think about it that you capture everybody, every visitation for every unique visitor, it's an amazing statistic.

Sands Cotai Central, our latest and largest property on the Coati Strip, continues its steady ramp and delivered $237 million in EBITDA this quarter. On a hold normalized basis, Sands Cotai Central generated $273 million in EBITDA during the quarter, and is approaching $1.1 billion annualized EBITDA run rate. That's only for the first quarter this year. By the time we get to the fourth quarter, we'll be running at that point at hopefully a significantly higher run rate.

That's the most important take away from the strong performance at both the Venetian and Sands Cotai Central. It's the clear positive impact that the increased critical mass of convention, exhibition, dining, retail and entertainment offerings including over 9,000 hotel rooms brings to the overall tourism appeal of the Cotai Strip. Our property portfolio was attracting customers who were staying longer which in turn is driving growth for both properties.

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