GGRAsia – 108% net increase in Marina Bay Sands Q2 net growth, loss of Macau EBITDA
108% net increase in Marina Bay Sands net growth in Q2, loss of Macau EBITDA
Net revenue at the Marina Bay Sands casino (pictured) in Singapore rose 107.6% year-on-year in the second quarter, to $679 million. Singapore’s adjusted property income before interest, tax, depreciation and amortization (EBITDA) jumped 184.8% to $319 million.
The city-state was reopening in stages its inbound tourism market, which had been severely reduced during the Covid-19 pandemic.
Marina Bay Sands’ second-quarter casino revenue increased 124.2% year-on-year to $500 million. Rolling token volume for VIP play increased by 781.4% to just over $5.39 billion. The mass market chip decline was just under $1.14 billion, up 105.6%.
The resort’s parent company, Las Vegas Sands Corp, said in its announcement on Wednesday that in the group’s portfolio of resorts in Macau, managed by the unit Sands China Ltd, net revenues fell 56.3% year-on-year. annually, at $374 million.
The market there has been affected by on-off restrictions on inbound tourism amid Covid-19 alerts in China. By Friday, Macau will have had a shutdown for almost two weeks non-essential businesses, including casinos, due to an ongoing citywide Covid-19 outbreak.
In the second quarter, adjusted real estate EBITDA in Macau was negative US$110 million, compared to positive EBITDA of US$132 million in the same quarter of 2021.
Andrew Lee, an analyst at Jefferies Hong Kong Ltd, said in a note on Sands China on Wednesday: “Of the property portfolio, only The Plaza recorded a positive EBITDA of $17 million, with The Venetian returning to an EBITDA loss. (negative $21 million) and Londoner’s negative $54 million loss, which is the largest quarterly EBITDA loss among properties.
Las Vegas Sands said at Venetian Macao, Sands China’s first Cotai property, casino revenue fell 70.4% year-on-year to $91 million. Volume of VIP Rolling Tokens fell 82.5% to $264 million. The decline in consumer chips was down 66.8% to $332 million.
Despite the improvement in Singapore, the parent group’s second-quarter net loss widened to $290 million from $192 million in the second quarter of last year.
“As pandemic-related restrictions continued to impact our financial results this quarter, we were pleased to see the recovery in Singapore gain momentum during the quarter,” said Robert Goldstein, Chief Executive Officer. general of Las Vegas Sands, quoted in a press release issued with the results.
The parent company said in its earnings presentation that the target date for completion of a US$3.3 billion expansion of Marina Bay Sands – previously agreed with the Singapore Tourism Board – was still 2026, as mentioned in a January 26 presentation. In April, the parent said he was able to postponement to 2023 the start of extension works, although it is also engaged in a US$1 billion overhaul of its current hotel space.
The group’s net debt as of June 30 was just under $8.88 billion. This reflected the inclusion in the balance sheet of a US$1.0 billion B2B term loan from Las Vegas Sands to Sands China, financed on July 11, 2022 and repayable on July 11, 2028. The group’s cash and cash equivalents were just under US$6.47 billion.
Sands China had “total available cash of $2.8 billion – including $1.0 billion available on the revolver and a $1 billion shareholder loan from its parent company Las Vegas Sands,” noted the analysts DS Kim and Livy Lyu of JP Morgan Securities (Asia-Pacific). Ltd in a Thursday note.
“That should give Sands [China] sufficient liquidity to support even [a] zero-income environment for 16 months,” until October 2023, they added.