As the global economy continues to grapple with the aftermath of the pandemic, Sands Casino has been riding the wave of recovery in Asia with particular success. Reporting for Q1, the company has once again credited robust growth in Macau as a critical factor for its revenue acceleration. Macau has served as a beacon of prosperity for Sands, especially since the easing of COVID-19 restrictions this past January.
The operator has not only reaped the benefits from its Macau endeavors but has also seen a significant surge in Singapore, specifically at the revered Marina Bay Sands venue. Following in Macau’s footsteps, Singapore lifted its pandemic curbs early in the year, bolstering the company’s operations to pre-pandemic vibrancy.
These lucrative strides in two of Asia’s most prominent markets have geared Sands towards expansion, with CEO and chairman Robert Goldstein eyeing another Asian jewel: Thailand. The Thai house of representatives has recently signaled a green light for legalizing casino gaming, placing the nation on the cusp of a new gaming landscape. The remaining hurdle for this anticipated legislation is approval from Thailand’s cabinet, an eventuality that Goldstein finds particularly exciting.
During an investor call, Goldstein was effusive about the company’s prospects in Thailand. He underscored the market’s appeal, citing Thailand’s considerable population, excellent accessibility, and the country’s established reputation as a top resort destination in Asia. Comparatively, he opined that a launch in Thailand might even precede their venture into Japan, citing it as a conceivable outcome given the current pace of developments. Sands’ preliminary work is ongoing, with a focus on crunching the numbers and honing their market understanding.
In contrast to the buoyant outlook for Asia, Sands’ aspirations in New York have been met with a more tepid environment. The company has long been interested in the U.S. state, vying for one of three new downstate licenses. However, the New York State Gaming Commission hinted at a delay in issuing these licenses until potentially late 2025, attributed to the extensive approvals required. Patrick Dumont, Sands’ president and COO, expressed frustration with the lack of clarity from New York regulators and the pushback on timelines, despite the company’s considerable investment in the state. Nonetheless, Sands maintains a hopeful stance for its New York ambitions.
Turning the spotlight back to the fiscal figures, Q1 showcased tangible growth for Sands in Macau, with a remarkable 41.6% year-on-year revenue increase, totaling $1.81 billion. The Venetian Macau spearheaded this success, boasting a 28.2% revenue hike to $771 million. Other properties, including the Londoner Macau, Parisian Macau, and Plaza Macau and Four Seasons Macau, also registered growth.
Singapore demonstrated similar vigor, with Marina Bay Sands’ revenues soaring by 36.6% to $1.16 billion over the same period. The operator’s overall net gaming revenue peaked at $2.96 billion after accounting for intersegment eliminations. Across the board, all sectors of the operator’s business saw revenue upticks, with casino activities alone contributing a substantial $2.29 billion, marking a 44.6% increase.
On the cost side, operating expenses in Q1 rose by 28.7% to $2.24 billion, with resort operations being the most significant expenditure area. Nevertheless, Sands ended the quarter with a solid pre-tax profit of $600 million, a staggering 297.7% yearly improvement. Taxes and non-controlling interests considered, the net profit for the company stood at $494 million, rocketing 236.1% from $147 million in the previous year.
Sands also witnessed a 52.4% increase in its adjusted property EBITDA year-on-year, reaching $1.21 billion. Goldstein concluded the report with an optimistic view of the company’s financial health, its capacity to support ongoing investments, the exploration of new markets, and a commitment to rewarding stockholders with the proceeds from its robust cash flow. Sands’ growth trajectory in Asia, paired with its strategic eye towards new horizons like Thailand, leaves the gaming giant poised for another year of substantial achievements.
