Ka-ching! Record casino takings triple MBS' Q1 earnings

SINGAPORE — Integrated resort Marina Bay Sands (MBS) delivered outstanding results in the first quarter of 2023 as most remaining Covid-19 travel curbs and measures were removed.

For the three months to end-March, its earnings more than trebled to US$394 million (S$526 million) from US$121 million in the year-ago period.

Parent company Las Vegas Sands (LVS) said MBS' mass gaming revenue hit a record of US$549 million for the casino.

Overall MBS revenue more than doubled to US$848 million from US$399 million a year ago. The bulk, or some 70 per cent of this, was contributed by its casino operations, with rooms, food and beverage, mall tenants and other segments making up the remainder.

Hotel occupancy at MBS rose to 97.6 per cent in the first quarter from 83.81 per cent for the same period last year.

The average daily rate more than doubled to US$594 from US$257 a year ago. Revenue per available room also showed big gains, increasing to US$580 from US$215 previously.

MBS also single-handedly accounted for 40 per cent of group revenue of US$2.1 billion, which topped analysts' expectations of US$1.8 billion.

US casino giant LVS saw first-quarter earnings soar to US$792 million from US$110 million in the year-ago period. Notably, the Singapore operations made up just under half of the group's earnings before interest, taxes, depreciation and amortisation.

"A robust recovery in travel and tourism spending across our markets is now under way," LVS chief executive officer Robert Goldstein said in a statement on Wednesday (April 19). 

"In Singapore, we were pleased to see the ongoing recovery at Marina Bay Sands progress during the quarter, with the property again delivering outstanding levels of performance in both mass gaming and tenant sales," he said.

MBS will begin work on a $4.5 billion expansion plan in April next year after being given a second extension by the Singapore Tourism Board, LVS disclosed last month. MBS announced in 2019 that it would be adding a 1,000-room hotel tower and a live entertainment arena capable of seating 15,000, among other facilities.

The plans were pushed back initially by the onset of the Covid-19 pandemic and the latest reprieve will postpone the completion deadline to April 8, 2028.

In Macau, LVS' biggest market, its six properties and other operations there contributed US$398 billion in earnings and US$1.28 billion in revenue.

Overall visitations in Macau rose by 22 per cent in March, compared with the first two months of 2023. However, this still lagged 2019's pre-Covid levels by some 40 per cent.

Ongoing labour constraints continue to impact hotel room availability as 31 per cent of hotels remain out of service in Macao. The company expects levels to rebound significantly by the third quarter, in time for the summer holiday season.

LVS said it expects further improvement in travel and tourism spending from China and Hong Kong as airline and ferry capacity rebounds.

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This article was first published in The Straits Times. Permission required for reproduction.