Singapores recovery fueled Las Vegas Sands’ earnings increase in the third quarter.
Las Vegas Sands’ third-quarter earnings climbed by 17.7% compared to the same period last year, mainly due to Singapores ongoing rebound from the pandemic, with the company affirming its new investment plans in the area.
Singapores recovery spurred Las Vegas Sands’ earnings growth in the third quarter.
Although operations in Singapore were affected by travel limits put in place during the pandemic, the region remains a key market for Sands, with the city-state’s operations returning to near-normal levels as many restrictions have been lifted.
Sands’ dedication to Singapore was evident in the third quarter, with CEO Robert Goldstein describing the nation as an “exceptional market for further investment” during the company’s second-quarter 2022 earnings call in July, while discussing premium customer retention and additional development in the region.
Goldstein added that he anticipates further growth if online gambling is legalized in the country.
After Sands released its third-quarter results, Goldstein repeated that activity in Singapore will only become stronger as COVID-19 restrictions ease, adding that it will continue to pursue growth opportunities in the country and Macau.
Sands Enterprises expressed enthusiasm about greeting more visitors at their lodgings as more travelers are able to journey to Singapore and Macau.
“Our investments in staff, neighborhoods, and our industry-leading integrated resort collection position us to achieve future progress as travel limitations ease and the tourism sector recovers.
“We are fortunate that our financial strength supports our investment and capital expenditure plans in Macau and Singapore, as well as our growth prospects in new markets.”
In the three months concluding September, Sands Enterprises’ income was $1.01 billion (896 million pounds/1.03 billion euros), up from $857 million in the same period last year.
Gaming income was $637 million, rooms contributed $123 million, food and drink $82 million, shopping centers $119 million, and gatherings, retail, and other $44 million.
Sands Enterprises’ most prosperous hotel was the Marina Bay Sands in Singapore, which generated $756 million in income for the quarter. Macau income was $258 million, with Sands Enterprises’ Venetian Macao hotel contributing the largest proportion of income at $104 million.
On the expenditure side, operating costs in the third quarter reached $1.18 billion, slightly higher than $1.17 billion in the same period last year. Sands Enterprises also reported $143 million in net financial costs, meaning the quarter ended with a pre-tax loss of $320 million, an improvement from the $621 million loss last year.
The company paid a hefty sum of $60 million in taxes, ultimately resulting in a total net deficit of $380 million, a stark contrast to the $594 million deficit recorded in the previous year. However, the company also highlighted that a significant portion of the net loss, amounting to $142 million, was attributed to non-controlling interests. This implies that the net loss directly attributable to the company was $239 million, a notable improvement from the $368 million loss experienced in the preceding year.
Furthermore, the operator reported a substantial year-on-year increase in its adjusted EBITDA, soaring by 306.4% to reach $191 million. This surge was primarily fueled by a significant boost in contributions from a specific property, which saw its earnings jump from $15 million to a remarkable $343 million.
“We are optimistic about the rebound of travel and consumer spending across all markets,” stated Goldstein. “Demand remains robust from customers who are able to travel.”
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