The Asian gaming market has showcased remarkable resilience, as evidenced by the latest financial report from Las Vegas Sands for Q4 2023. Despite facing the lingering impacts of the COVID-19 pandemic, the operator reported substantial revenue growth, particularly driven by its Singapore operations at Marina Bay Sands.
Overall Performance Overview:
Las Vegas Sands reported a robust Q4 2023, with revenue reaching $2.92 billion, reflecting a remarkable 161% YoY growth. However, it is noteworthy that the revenue is still on the path to recovery, standing 16.9% lower than Q4 2019.
Singapore Operations – Marina Bay Sands:
Marina Bay Sands emerged as a beacon of stability, contributing $1.06 billion in revenue for Q4 2023. This figure represents a notable 55.6% YoY growth and a substantial 24.4% increase compared to the same quarter in 2019. The consistent development in Singapore suggests a resilient market.
Macau Operations:
Las Vegas Sands’ Macau operations faced challenges in fully recovering to pre-COVID levels. Despite a 319.6% YoY increase in revenue, totaling $1.86 billion, the gap from Q4 2019 remains at 16.9%. The Venetian Macau led the financial contributions with $748 million, followed by The Londoner Macau and The Parisian Macau.
Comparison of Net Revenue and Adjusted Property EBITDA:
While the gap in net revenue from 2019 is 16.9%, the adjusted property EBITDA paints a slightly more optimistic picture. In Q4 2023, the adjusted property EBITDA was $1.2 billion, only a 13.7% decrease from the $1.39 billion reported in Q4 2019. This suggests that the EBITDA metric might be on track to recover faster than net revenue.
Regional Gaming Market Recovery:
The positive trends extend beyond Las Vegas Sands, with MGM China reporting revenue surpassing pre-COVID levels in Q3 2023, demonstrating a 10% increase compared to Q3 2019. The Gaming Inspection and Coordination Bureau of Macau reported a significant increase in Macau’s 2023 revenue, up 334% from 2022, indicating a promising trajectory towards pre-pandemic levels.
Asian Gaming Landscape Beyond Macau and Singapore:
The broader Asian gaming market continues to show strength, with notable performances in other territories. The Philippines, as reported by The Philippine Amusement and Gaming Corporation (PAGCOR), achieved a record-high revenue of Php285.27 billion ($5.09 billion) in 2023, marking a substantial YoY growth of 33.1%.
Future Prospects:
The Asian gaming market is poised for a bright future, evident in developments such as the opening of the first Japanese casino resort in Osaka and the Mohegan Inspire receiving a prestigious five-star hotel rating. These milestones contribute to an optimistic outlook for the Asian gaming industry, even as a complete recovery is yet to be realized.
Las Vegas Sands’ Q4 2023 earnings report serves as a microcosm of the broader Asian gaming market’s resilience. Despite facing challenges, the industry is showing signs of recovery, with key players contributing to positive growth trends. The trajectory towards pre-COVID levels is evident, offering a promising outlook for the future of gaming in Asia.