Galaxy And Sands China Post Higher Macau Mall Revenue In Q2

Galaxy Entertainment and Sands China both reported year over year growth in Macau mall revenue during the second quarter, helped by stronger luxury spending across Cotai.

Galaxy Macau generated HKD379 million in mall net revenue, up 15.6%, while Sands China reported $131 million from its Cotai malls, up 4.8%.

Good to Know

• Galaxy Macau mall revenue rose 15.6% year over year.
• Sands China Cotai mall revenue increased 4.8% to $131 million.
• Shoppes at Four Seasons returned to year over year growth after seven quarters of declines.

Luxury Retail Helps Cotai Malls

Sands China recorded some of the clearest gains in tenant sales.

Shoppes at Venetian reached $2,161 in tenant sales per square foot, up 27.1%, while Shoppes at Londoner rose 24.9% to $1,886. Shoppes at Four Seasons remained the strongest property at $4,650 per square foot, up 7.2%.

Galaxy also benefited from demand for gold jewellery and luxury watches. Jefferies analysts Anne Ling and Jingjue Pei linked the performance to high value customers, exchange rate conditions and some luxury spending returning from Japan to Hong Kong and Macau.

Both operators had already posted retail growth in the first quarter, so the Q2 numbers extend that trend rather than represent a one quarter rebound.

Sands China said higher overage rent and base rent added $6 million combined to second quarter mall revenue. Its main Cotai retail portfolio includes The Venetian Macao, The Londoner Macao, The Plaza Macao, Four Seasons Macao and The Parisian Macao.

Galaxy and Sands China also continued refreshing their tenant mix during the quarter, adding brands including Laopu Gold, Boss, Hublot, Dior, Tory Burch, Marni and Emporio Armani.

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