Singapore’s Rebound Fueled Las Vegas Sands’ Earnings in the Third Quarter
Singapores rebound fueled Las Vegas Sands’ earnings in the third quarter.
Las Vegas Sands’ earnings climbed by 17.7% annually in the third quarter, primarily driven by Singapores ongoing recovery from the health crisis, and the operator restated its plans for new investments in the area.
Singapores revival boosted Las Vegas Sands’ earnings in the third quarter.
Despite the effect of travel limitations enforced during the health crisis, the region remains a key market for Sands, and the city-state’s operations have returned to near-normal levels as many restrictions have been lifted.
Sands’ dedication to Singapore was apparent in the third quarter, when its CEO, Robert Goldstein, labeled the nation “a great market for additional investment” during the company’s second-quarter 2022 earnings call in July, while discussing high-end customer retention and further development.
Goldstein added that he anticipates further growth if online gambling is legalized in the nation.
Following the release of Sands’ third-quarter results, Goldstein restated that activity in Singapore will only get stronger as COVID-19 restrictions ease, adding that the company will continue to seek growth opportunities in the nation and Macau.
We are thrilled to greet more guests at our hotels as travel to Singapore and Macau picks up.
Our commitment to our staff, our community, and our top-notch integrated resort properties has set us up for future success as travel restrictions ease and tourism bounces back.
We are lucky that our financial strength backs our investment and capital spending plans in Macau and Singapore, as well as our growth prospects in new markets.
For the three-month period ending in September, revenue was $1.01 billion (£896 million/€1.03 billion), surpassing the $857 million recorded in the same period last year.
Casino operations revenue was $637 million, room revenue was $123 million, food and beverage revenue was $82 million, retail revenue was $119 million, and convention, retail, and other revenue was $44 million.
Sands’ most successful property was Marina Bay Sands in Singapore, which generated $756 million in revenue for the quarter. Macau revenue was $258 million, with the Venetian Macao, also owned by Sands, generating the highest revenue at $104 million.
On the spending side, operating expenses for the third quarter reached $1.18 billion, slightly higher than the $1.17 billion recorded in the same period last year. Sands also reported $143 million in net financial expenses, meaning the quarter ended with a pre-tax loss of $320 million, an improvement from the $621 million loss last year.
The company shelled out $60 million in taxes, leading to an overall net deficit of $380 million, in contrast to $594 million in the previous year. However, the company also highlighted that $142 million of its net loss was due to non-controlling entities, indicating that the net loss attributable to the company was $239 million, a positive change from the previous year’s $368 million.
Furthermore, the operator stated that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 306.4% year-on-year to $191 million, fueled by a substantial increase in contributions from Marina Bay Sands, which climbed from $15 million to $343 million.
“We are optimistic about the rebound of travel and tourism expenditures in our markets,” Goldstein stated. “Demand from customers who are able to visit remains robust.”
Sign up for the iGaming newsletter.