Earlier today Sands reported $1.04bn in revenue for the second quarter of 2022, down 10.9% year-on-year as restrictions in Macau hindered its growth. Revenue at its properties in the Special Administrative Region dipped across the board. These locations are currently shut, as the region rides out another wave of Covid-19, and are due to reopen on 23 July.
Conversely, revenue at Las Vegas Sands’ Singapore property, Marina Bay Sands, more than doubled to $679m. The revenue jump at Marina Bay Sands was be mostly attributed to casino revenue, which grew by 124.2% year-on-year. Food and beverage revenue, along with convention, retail and other revenue, also doubled.
Goldstein attributed this strong growth to the loosening of Covid-19 measures in the Singapore, and says he expects further growth if online gambling becomes legal in the country.
“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,” said Goldstein.
“We expect more robust recovery over time as Singapore comes online and further relaxation measures in the region are implemented.”
He added that the company’s $1bn investment at Marina Bay Sands will allow it to cater to “premium customers”. This has seen it develop new suite products and amenities targeting those high-end consumers.
“More offerings will be added throughout the remainder of 2022 and 2023,” Goldstein said. “And this one has the properties appeal to premium customers seeking the highest level travel experiences.”
“Singapore remains in an outstanding market for additional investment.”
Grant Chum, chief operating officer at its Sands China subsidiary, added the operator is committed to “long-term investment” in Singapore, stating that Marina Bay Sands presents the company with a unique opportunity.
“I think one thing that’s important to note is that we view Marina Bay Sands as the best building in the world,” said Chum. “And in our mind, it’s just an unbelievable opportunity to continue invest and operate the building and grow it over time.”
Chum also said that Las Vegas Sands feels positive about potentially redeploying its products for the growing “premium mass” segment in Macau, amid the wider shift away from junkets.
“I think Macau overall may be looking at how each operator redeploys their assets,” continued Chum. “But as far as we’re concerned, especially with the new products that we’ve developed over the past two years, we feel pretty positive about redeploying a lot of those gaming spaces for the premium mass segment.”
In terms of marketing and acquisition outside of Singapore, Patrick Dumont, group COO, said that the business is focusing on building “from the ground up”.
“You may have heard us in the past say that our highest and best use of capital is new development from the ground up,” said Dumont. “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.”