In discussions about retaining premium customers and further development, Las Vegas Sands CEO Robert Goldstein called Singapore “a good market for additional investment” in its second quarter 2022 earnings call.
Sands reported today that sales for the second quarter of 2022 were $ 1.04 billion, down 10.9% year-on-year due to Macau regulations hindering growth. Revenues on its assets in the SAR have fallen altogether.These places Currently closedThe area is set to reopen on another wave of Covid-19. July 23rd.
Conversely, Marina Bay Sands, a Singapore property in Las Vegas Sands, more than doubled in revenue to $ 679 million. The revenue surge at Marina Bay Sands was up 124.2% year-over-year, primarily due to casino revenue. Food and beverage revenue doubled, along with convention, retail and other revenue.
Goldstein said this strong growth is due to the relaxation of Covid-19 measures in Singapore and hopes for further growth if online gambling is legalized in Singapore.
“Pandemic deregulation in Singapore and much of its source market has enabled this promising improvement in Marina Bay Sands’ financial performance,” said Goldstein.
“As Singapore goes online and further mitigation measures are implemented in the region, a stronger recovery is expected over time.”
He added that the company’s $ 1 billion investment in Marina Bay Sands will enable it to serve “premium customers.” This has led to the development of new suite products and amenities for these high-end consumers.
“More products will be added over the rest of 2022 and 2023,” Goldstein said. “And it has properties that appeal to premium customers seeking the highest level of travel experience.”
“Singapore remains an excellent market for additional investment.”
Grant Cham, Chief Operating Officer of Sands China’s subsidiary, said Marina Bay Sands offers the company a unique opportunity, adding that operators are working on a “long-term investment” in Singapore.
“One of the important things to keep in mind is that we consider Marina Bay Sands to be the best building in the world,” says Chum. “And in our opinion, continuing to invest and operate a building and growing it over time is an incredible opportunity.”
Cham also said Las Vegas Sands is positive about the potential to redeploy its products to the growing “premium mass” segment in Macau in a broad shift from junkets.
“I think Macau as a whole is looking at how each operator will redeploy their assets,” continues Chum. “But as far as we’re concerned, we’re pretty positive about redeploying many of these game spaces for the premium mass segment, especially for new products we’ve developed over the last two years.”
Regarding marketing and acquisitions outside Singapore, Group COO Patrick Dumont said the business is focused on building “from scratch.”
“You may have heard in the past that the highest and best use of capital is new development from scratch,” Dumont said. “Looking at the company’s history and its success, the way to provide external shareholder returns is to take advantage of the strategy of building large integrated resorts in new jurisdictions.”
“That’s what we’re focusing on.”
