Singapore operations improving as Macau stumbles – Sands CEO

Las Vegas Sands’ net revenue dropped to US$943 million in the first quarter of this year when compared to US$1.20 billion in the prior year quarter, with operating losses tripling to US$302 million.

Still, during a conference call to discuss the latest financial results the head of LVS expressed satisfaction in the recovery of business volume in Singapore as the city-state continued to ease pandemic restrictions.
“We did generate positive EBITDA for the quarter in Singapore and for the company in total. The good news in Singapore is the travel corridors established last quarter has been replaced with an introduction of the vaccinated traveller framework, which allows vaccinated travellers to enter Singapore in much the same way as prior to the pandemic,” Goldstein noted.
“In short terms, we are open for business in Singapore. Our conviction and long-term opportunity in the Singapore market remains steadfast.”

Goldstein noted that EBITDA for the group’s Marina Bay Sands integrated resort went from US$17 million in January to US$58 million in March, with the group expecting a total US$1 billion run rate for this year.

“In the month of March, we saw outsized demand from free independent travelers on the pure leisure side, we saw premium mass. We saw high-end plate coming out of over the rim,” the Sands CEO expressed.

However, in Macau, Sands China’s losses jumped by 37 per cent quarter-to-quarter to US$336 million in the first quarter, with adjusted property EBITDA going back to red, with some US$11 million in losses registered.

The also Sands China CEO added that despite the difficult business environment in Macau the group customer demand and spending in the city have “proven resilient at the premium mass level from both a gaming and retail perspective” in periods when the restrictions have been relaxed.

“We remain confident that we return to positive cash flow in both Macao and Singapore in the future as restrictions are eased and travel and tourism recover. We consider our portfolio of resorts in Asia to be an outstanding platform for growth in the years ahead. In addition, we continue to pursue opportunities to develop large-scale resorts in both the United States and Asia”.

Goldstein noted that until Macau opens up again, regional players would likely “gravitate” towards other locations, with Singapore obviously benefitting from this.

“Macau is in a difficult place right now, so people are going to gravitate to other opportunities. They want to travel […] We’re hoping Macau opens up obviously sooner. But until it does, I think you’ll see a lot more demand [in Singapore] than typical”

Still, Las Vegas Sands, President and Chief Operating Officer, Patrick Dumont defended that the group still had a very strong balance sheet despite the liquidy concerns over the business conditions in Macau.
“Yes, we’ve received some stress over the last few years under the pandemic’s tough operating conditions, I think we all have. But the good news is that our company as a group has a lot of liquidity a lot of different options. I think the good news is also that we were an investment-grade company during the pandemic, which does a lot about the market’s view about our ability to raise additional capital,” he noted.

Las Vegas Sands has previously also committed to ‘heavily reinvesting’ in its Asia businesses after completing a US$6.25 billion sale of all its Las Vegas assets.

By Nelson Moura