During the Q2 2022 earnings call, Las Vegas Sands’ CEO, Robert Goldstein, expressed optimism about the Singapore market and highlighted the company’s focus on premium customer retention and future developments. Despite facing challenges in Macau due to Covid-19 restrictions, Las Vegas Sands reported revenue of $1.04 billion for the quarter. While its Macau properties remained closed, revenue at Marina Bay Sands in Singapore more than doubled, driven by significant growth in casino revenue and other segments. The company sees Singapore as an exceptional market for additional investments and aims to cater to the premium customer segment.
Marina Bay Sands: Strong Performance and Future Investments:
Las Vegas Sands experienced a decline in overall revenue due to ongoing restrictions in Macau. However, Marina Bay Sands showcased impressive growth, generating $679 million in revenue. The surge in revenue was primarily attributed to the substantial increase in casino revenue, which grew by 124.2% year-on-year. Food and beverage revenue, as well as convention, retail, and other revenue, also doubled during the quarter. Goldstein attributed this success to the relaxation of Covid-19 measures in Singapore and expressed optimism about further growth if online gambling becomes legalized in the country. The company’s $1 billion investment at Marina Bay Sands will enable the development of new suite products and amenities to cater to premium customers.
Long-Term Investment in Singapore:
Grant Chum, COO of Sands China subsidiary, emphasized Las Vegas Sands’ commitment to long-term investment in Singapore, highlighting Marina Bay Sands as an extraordinary opportunity. Chum regarded Marina Bay Sands as the best building in the world and expressed the company’s enthusiasm to continue investing and growing the property over time. Las Vegas Sands considers Singapore an outstanding market for additional investments, indicating its confidence in the region’s potential for further growth.
Redeployment for the Premium Mass Segment in Macau:
As the industry moves away from relying on junkets, Las Vegas Sands expressed a positive outlook on redeploying its products for the growing “premium mass” segment in Macau. Chum stated that the company feels optimistic about reallocating gaming spaces to cater to this segment, leveraging new products developed over the past two years. While operators in Macau may explore different strategies, Las Vegas Sands believes in the potential of the premium mass market and aims to maximize its assets accordingly.
Focus on Ground-Up Developments and Expanding into New Jurisdictions:
Patrick Dumont, Group COO, emphasized Las Vegas Sands’ focus on building new developments “from the ground up.” The company believes that its highest and best use of capital lies in the strategic construction of large-scale integrated resorts in new jurisdictions. Exploiting this successful strategy has been instrumental in delivering shareholder returns, and Las Vegas Sands remains committed to pursuing similar ventures in the future.
Las Vegas Sands’ Q2 2022 earnings call highlighted the contrasting performance of its properties in Macau and Singapore. While facing challenges in Macau due to Covid-19 restrictions, the company experienced significant growth in revenue at Marina Bay Sands.
Las Vegas Sands remains optimistic about the Singapore market, with plans for additional investments and a focus on catering to the premium customer segment. Moreover, the company sees potential in redeploying its assets for the premium mass market in Macau. Las Vegas Sands remains committed to ground-up developments and expanding into new jurisdictions, leveraging its successful track record in the industry.