Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
SANDS CHINA LTD
HKEx Stock Code : 01928 
 
Corporate Profile
The principal activities are the development and operation of integrated resorts in Macao, which contain not only gaming areas but also meeting space, convention and exhibition halls, retail and dining areas and entertainment venues.

Business Review - For the year ended December 31, 2012

On behalf of the Board of Directors of Sands China Ltd. (ˇ§Sands Chinaˇ¨ or the ˇ§Companyˇ¨), I am pleased to report to you at the conclusion of another very successful year for the Company. During the year we achieved many important fi nancial and operating objectives and delivered robust, market-leading growth in Macao, the world's largest and most profi table gaming market. We set records during the year for revenue, adjusted EBITDA and earnings growth while also generating significant returns for shareholders. The strong balance sheet and fi nancial performance of the Company allowed the Board of Directors to declare dividends per share of HK$1.16 in 2012 for a total of over HK$9.3 billion in cash returned to shareholders. We are also pleased to announce that Sands China was selected as a constituent of the prestigious Hang Seng Index in 2012.

The Company's adjusted EBITDA reached a record US$1.98 billion with adjusted EBITDA margin reaching 30.4% on US$6.51 billion in net revenue in the 2012 year. The Venetian Macao, our flagship property on Cotai, and the Four Seasons Hotel Macao and the Plaza Casino each generated record revenue and adjusted EBITDA during the year while the Sands Macao on the Macao Peninsula continued to deliver solid operating results. Strong mass gaming volumes throughout our portfolio of properties, coupled with growth in non-gaming revenue from our hotel, retail, mall and convention businesses, drove the record results and reflect the inherent benefits of our integrated resort business model.

Sands Cotai Central, our latest development on Cotai and the largest integrated resort development in the Company's history, opened its first phase on April 11, 2012. Sands Cotai Central adds 5,800 hotel rooms, expansive retail shopping, food and beverage, meeting and convention, entertainment and gaming capacity to Cotai and further solidifies our presence as the leading integrated resort developer and operator in the market. On December 20, 2012 we opened a fully enclosed climate-controlled footbridge with escalators and moving walkway to enhance the inter-connectivity and accessibility between our Cotai Strip properties.

Business Outlook - For the year ended December 31, 2012

Our properties continue to generate market-leading visitation, and in 2012 we welcomed over 46 million visitors to our Cotai Strip properties, including over 5 million in the month of December alone. We are incredibly proud to be contributing to the increasing visitation to Macao from across the region. Importantly, the benefits of our integrated resort business model extend far beyond our own financial success. The Company's properties and service offerings enhance Macao's appeal as a business and leisure tourism destination, helping to diversify Macao's economy and to provide meaningful employment opportunities for the people of Macao. Looking ahead, I am confident that the introduction of The Parisian Macao, our next development on Cotai, which we are targeting to open by late 2015, will meaningfully contribute to Macao's position as a leading business and leisure destination in Asia.

Importantly, we could not have achieved our record financial results without the hard work and dedication of Sands China's more than 25,000 team members and I look forward to their continued contributions in the years ahead.

Our Sands China business strategy remains straightforward: complete the successful execution of our Cotai Strip development strategy and maximize return for shareholders by leveraging our integrated resort business model and world-class amenities to generate market-leading revenue and cash flow. We look forward to sharing the Company's continued success with you and other stakeholders at the upcoming Sands China Annual General Meeting.

Source: Sands China Ltd (01928) Annual Results Announcement
Chairman Sheldon Gary Adelson Issued Capital (shares) 8,057M
Par Value USD 0.01 Market Capitalisation (HKD) 340,428M
 
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