LVS eyes $2 billion Singapore EBITDA after best quarter since pandemic

Content Team 1 year ago
LVS eyes $2 billion Singapore EBITDA after best quarter since pandemic

The Las Vegas Sands expects Singapore EBITDA to “easily” return to 2019 levels and reach $2 billion as the market improves over the next few years.

The predictions were given by Chairman and CEO Rob Goldstein in a conference call with analysts following the release of 3Q22 results.

The group posted overall net revenue for the quarter of $1.01 billion, up from $857 million the prior quarter, with the operating loss narrowing to $177 million from $316 million in 2Q22. However, Las Vegas Sands’ continued to show a wide divergence, with its Marina Bay Sands property in Singapore pulling ahead and its Macau operations dragging. 

Marina Bay Sands posted adjusted property EBITDA in the quarter of $343 million, its best since the beginning of the pandemic. 

The Macau operations saw an EBITDA loss of $151 million for the quarter as the gambling hub continued to suffer from China’s zero-Covid travel restrictions. 

Goldstein said Singapore was still ramping up and at present is seeing 55 percent visitation into the island from the rest of Asia. The key China market segment is also still missing, with uncertainty as to when it will return. Still, he remains confident in the market’s prospects.

Singapore prospects strong

I think Singapore, it’s just beginning,” he said. “ I always joke with the guys here, the party is just starting in Singapore. The truth is that Singapore is going to grow and for a couple of reasons. One is that the destination is getting more powerful than ever. Our building is getting better than ever.”

He said once China returns, the property should begin to generate annual EBITDA of $2 billion.

In Macau, executives said they expected the government to wrap up the tender process for the new concessions by the end of the year, as scheduled. 

Sands China President Wilfred Wong said the company had been working closely with the Macau government. The company has held a couple of rounds of discussions and is waiting to hear whether there will be further talks. He said he expects some update on proceedings at the end of the month.

Seven bidders have stepped forward to bid for the six Macau casino licenses on offer. The six current concessionaires, plus Malaysia’s Genting Group.

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