Mixed results in Macau as Visitor Numbers Fall
Gambling companies in Macau have reported mixed interim results as the number of visitors drop due to the economic slowdown in China.
Sands China’s first-half net profit fell by 18.5% to KH$3.41 billion down from HK$4.2 billion last year. However, much of these losses are due to the failure of land concessions and the closure of Cirque du Soleil’s Zaia show at The Venetian Macao, there was also significant pre-opening expenses for the Sands Cotai Central. When these losses are removed Sands’ first-half profit actually rose 20.3% to HK$5.24 billion.
Sands is expecting that casino performance will grow faster next year as they expand in Taiwan and other Southeast Asian countries such as Vietnam and Korea.
There was more success for Melco Crown Entertainment who recorded an interim net profit of HK$1.58 billion, nearly triple what is was last year.
Visitor numbers to the resorts may also have been affected by a recent spate of murders in the area which have raised concerns that the region may be returning to its former ways. However, it is widely believed that the Chinese government will not tolerate rising violence nor is it wanted by the junket operators who would see a direct effect on their businesses.