Sands China's 2014 net profit up 15pc on growth in non-gaming activities

Sands China, the largest Macau casino operator, announced a 15 per cent rise in full year profit to US$2.55 billion, more or less in line with a consensus forecast of US$2.59 billion according to 25 analysts polled by Bloomberg.

Shares rose 3.2 per cent to HK$38.65, outperforming the benchmark Hang Seng Index which gained 1.07 per cent.

Casino revenue grew 5.8 per cent while its mall, hotel rooms, food and beverage, conventions and other businesses expanded by double digits. The decelerating gambling income and expansion of more family friendly activities reflects the wider industry trend to diversify away from gambling and the effects of the anti-graft campaign which are keeping high rollers away.

In late January, parent company Las Vegas Sands revealed that the US$2.7 billion Macau resort, the Parisian, would have its opening delayed until next year. Management had previously advised a soft opening by December and a full resort launch in March.

Analysts are anticipating Macau's gaming revenue to experience a drop of about 40 per cent year on year for February despite Lunar New Year falling on the 19th of this month. Last February set a gross gaming revenue monthly record high of 38 billion patacas.

UBS gaming analyst Anthony Wong expects volatility to continue in the first half of the year. "Transit visa crackdown is tightened up but there are still some issues that can be enforced more strictly," he said. "The issue of UnionPay, people going into jewellery shops and getting cash, is still happening."