Sands announced today that it generated $1.04 billion in revenue for the second quarter of 2022, reflecting a decline of 10.9% year-on-year due to restrictions in Macau that impeded growth. Revenue dropped across all properties in the Special Administrative Region, which are currently closed as the region experiences another wave of Covid-19, with plans to reopen on July 23.
In contrast, revenue at Marina Bay Sands in Singapore, owned by Las Vegas Sands, saw a significant increase, more than doubling to $679 million. This surge was primarily driven by casino revenue, which rose by 124.2% year-on-year, and was complemented by a doubling of food and beverage revenue, as well as revenue from conventions, retail, and other sources.
Goldstein credited this impressive growth to the easing of Covid-19 restrictions in Singapore and expressed optimism for further progress should online gambling become legalized in the nation. "The relaxation of pandemic related restrictions in Singapore and many of its source markets has enabled this encouraging improvement in the financial performance at Marina Bay Sands," he stated. He anticipates a more robust recovery as Singapore reopens and additional relaxation measures in the region are implemented.
Goldstein noted that the company’s $1 billion investment at Marina Bay Sands is intended to attract "premium customers," with plans to introduce new suite products and upscale amenities for this demographic. He mentioned, "More offerings will be added throughout the remainder of 2022 and 2023," underscoring the location's appeal to premium customers seeking exceptional travel experiences. He referred to Singapore as an exceptional market for further investment.
Grant Chum, the chief operating officer at Sands China, emphasized the company’s commitment to long-term investments in Singapore, highlighting Marina Bay Sands as a distinctive opportunity. "I think one thing that’s important to note is that we view Marina Bay Sands as the best building in the world," Chum remarked, describing it as an unrivaled opportunity for continued investment and operational growth.
Additionally, Chum conveyed that Las Vegas Sands is optimistic about shifting its focus to the growing "premium mass" segment in Macau as the industry moves away from junket operations. "I think Macau overall may be looking at how each operator redeploys their assets," he stated, adding that they are encouraged about adapting many of their gaming spaces for the premium mass segment with new products developed in the past two years.
Regarding marketing and acquisition efforts outside Singapore, Patrick Dumont, group COO, stated that the company is concentrating on developing initiatives "from the ground up." He reinforced the company's belief that its best use of capital lies in new development, noting, "If you look at the history of the company and its success, the way it’s delivered outside shareholder returns is exploiting a strategy of building large-scale integrated resorts in new jurisdictions. That’s what we’re focused on."
