Global hospitality and casino operator Sands has announced its financial results for the third quarter, highlighting revenue growth and a positive outlook for the recovery of the travel and tourism industry. Despite ongoing challenges posed by travel restrictions, Sands remains confident in its strong financial position and continues to invest in its properties in Macao, Singapore, and new markets. This article provides an overview of Sands’ Q3 performance, revenue breakdown, and the company’s optimistic outlook for the future.
Q3 Revenue Growth:
Sands reported revenue of $1.01 billion for the three months ending September, a significant increase from $857 million in the previous year. This growth reflects the gradual recovery in travel and tourism as restrictions begin to ease. Casino activity contributed the highest revenue, accounting for $637 million, followed by rooms at $123 million, food and beverage at $82 million, malls at $119 million, and convention, retail, and other activities at $44 million.
Marina Bay Sands Success:
Marina Bay Sands in Singapore emerged as the most successful property for Sands, generating $756 million in revenue during the quarter. This highlights the popularity and appeal of the integrated resort, which offers a diverse range of entertainment, gaming, and hospitality options. Sands’ presence in Macao also contributed to revenue, with The Venetian Macao generating $104 million.
Operating Expenses and Financial Performance:
Operating expenses for Q3 slightly increased to $1.18 billion compared to the same period last year. Sands reported $143 million in net finance spend, resulting in a pre-tax loss of $320 million, a significant improvement from $621 million in the previous year. After accounting for taxes and non-controlling interests, Sands reported a net loss of $380 million. However, when considering net loss attributable to Sands, the figure improved to $239 million, reflecting the company’s efforts to mitigate losses and improve financial performance.
Adjusted Property EBITDA:
Sands highlighted an impressive 306.4% year-on-year increase in adjusted property earnings before interest, tax, depreciation, and amortization (EBITDA). The figure stood at $191 million, primarily driven by the substantial contribution from Marina Bay Sands, which jumped from $15 million to $343 million. This demonstrates the resilience and profitability of Sands’ flagship property.
Optimistic Outlook and Future Growth:
Despite the challenges faced by the travel industry, Sands remains confident in the recovery of travel and tourism spending across its markets. The company’s strong financial position allows for continued investment in existing properties, such as Macao and Singapore, while actively pursuing growth opportunities in new markets. Sands believes that demand from customers who have been able to visit remains robust, highlighting the potential for further revenue growth as travel restrictions further subside.
Sands’ Q3 financial results showcase the company’s resilience and ability to adapt to changing market conditions. The significant revenue growth, driven by Marina Bay Sands’ success, reflects the strong appeal of Sands’ integrated resorts. With an optimistic outlook for the recovery of the travel and tourism industry, Sands is well-positioned to capitalize on future growth opportunities. As travel restrictions continue to ease, Sands remains committed to providing exceptional experiences for its customers and driving revenue across its diverse portfolio of properties.