Apr 20, 2023 Newsdesk Latest News, Macau, Singapore, Top of the deck  
Macau casino operator Sands China Ltd achieved adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$398 million in the first quarter of 2023. That compared with an EBITDA loss of US$11 million a year earlier, and a negative figure of US$51 million in the final quarter of 2022.
The latest quarterly adjusted property EBITDA result represented circa 46 percent of first-quarter 2019 level, i.e., the trading period before the onset of the Covid-19 pandemic in early 2020.
Net revenue for Sands China rose by 132.1 percent year-on-year, to nearly US$1.28 billion, according to a Wednesday filing from its United States-based parent, Las Vegas Sands Corp. Such revenue was up from US$444 million in fourth-quarter 2022.
Approximately 3,800 rooms – about 31 percent of Sands China’s total portfolio – were out of service in the Macau operations “due to labour constraints during the quarter,” stated the parent company.
Net loss for Sands China in the first three months of 2023 was US$10 million, down from US$336 million in the prior-year period, and from US$348 million in the preceding quarter.
“Sands’ fourth-quarter was a positive surprise with very big beats in EBITDA …, led by solid mass tables and much better-than-expected slots, as well as near-full recovery in retail income,”said a Thursday note from JP Morgan Securities (Asia Pacific) Ltd.
“This was despite the fact that its available room inventory was severely constrained by labour shortage …, which in turn suggests significant headroom to grow from here as the labour situation normalises into second/third quarters” this year, wrote analysts DS Kim and Mufan Shi.
‘Strong’ March
JP Morgan noted that March was “Sands’ best month” within the first quarter. Compared to the first two months, “its gaming volumes grew double digit, room nights rose 8 percent, and margin improved even further in March.”
The casino firm stated that the “relaxation of many travel restrictions in China in early January enabled the recovery of travel and tourism spending to begin”.
Macau cancelled with effect from January 8 most of its travel restrictions related to the Covid-19 pandemic, dropping all testing requirements for inbound travellers from mainland China, Hong Kong and Taiwan.
In Wednesday’s filing, the parent company said the Macau property portfolio experienced a “robust recovery in all gaming and non-gaming segments”.
Mass-gaming revenue for the period “reached US$1.0 billion for the first time since 2019,” it added.
Sands China’s non-rolling table win in the mass market was US$911 million in the opening quarter of 2023, compared to US$354 million a year earlier. It was about 60 percent of first-quarter 2019 levels, said the firm. Slot win reached US$118 million, up from US$29 million a year ago, and circa 77 percent of 2019 levels.
Rolling win in the VIP segment stood at 23 percent of pre-pandemic levels, at US$155 million in the first quarter of 2023.
The group’s Cotai flagship, the Venetian Macao (pictured), reported net revenue of US$558 million in the three months to March 31, up from US$227 million in the prior-year period. Casino revenue stood at US$446 million, compared with US$157 million in first-quarter 2022.
The Venetian Macao’s adjusted property EBITDA rose to US$210 million, compared with US$19 million a year ago.
MBS “all-time record”
At Las Vegas Sands’ other ongoing operation – Marina Bay Sands in Singapore – quarterly adjusted property EBITDA reached US$394 million, circa 93 percent of first-quarter 2019 level. The EBITDA result was up from US$121 million in first-quarter 2022.
Mass-market win “reached an all-time property record” of US$549 million, said Las Vegas Sands. Rolling volume stood at US$7.1 billion, about 99 percent of first-quarter 2019 level.
“The relaxation of travel restrictions and increases in flight capacity have enabled an ongoing recovery in market visitation,” stated the company.
Net revenues at Marina Bay Sands stood at US$848 million in the three months to March 31, compared to US$399 million a year earlier.
“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,” said Robert Goldstein, chairman and chief executive of Las Vegas Sands.
He added: “We remain energieed by the opportunity to introduce our new suite product to more customers as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continue.”
In March, Las Vegas Sands said it had been authorised by Singapore’s authorities to delay by 12 months the deadline to start construction work for the extension of Marina Bay Sands. It was the second 12-month deadline extension granted to the firm regarding the start of construction for the expansion.
The company is currently carrying out a separate, unrelated US$1.0-billion “suite renovation programme” for the existing accommodation at Marina Bay Sands. According to the firm, upon completion of the scheme in December 2023, the property will feature approximately 400 “premium suites”, compared to approximately 150 in 2019.
Group-wide, Las Vegas Sands reported first-quarter net income from continuing operations of US$145 million, versus a net loss of US$478 million in the same quarter of 2022. Net revenue for the period was US$2.12 billion, compared to US$943 million in the prior-year quarter.
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