Casinos in Singapore: Marina Bay Sands revenue down 9.5% in Q3
Net revenue reached US$919m in the third quarter.
Singapore.- Las Vegas Sands has reported that Marina Bay Sands’ (MBS) net revenue was down 9.5 per cent year-on-year, to US$919m. The figure was also down 9.89 per cent from the second quarter of the year.
The casino operator’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$406m, down 17.3 per cent year-on-year from US$491m for the third quarter of 2023 and down 21 per cent from the previous quarter.
Casino revenue was down 16.33 per cent year-on-year from US$698m to US$600m and rolling chip volume by 19.5 per cent to US$6.55bn. Non-rolling chip drop was up 9.8 per cent at US$2.12bn. The slot handle was down 8 per cent at US$5.85bn.
Robert G. Goldstein, chairman and chief executive officer, said: “Although our reported financial results for the quarter reflected lower than expected hold in Singapore and the impact of disruption from our ongoing development work at the Londoner in Macao, we continued to execute our strategic objectives during the quarter. We remain enthusiastic about our opportunities to deliver industry-leading growth in both markets in the years ahead as we execute our capital investment programs in both Macao and Singapore.
“In Singapore, although Marina Bay Sands was negatively impacted by low hold this quarter, the property continued to deliver outstanding financial and operating performance. Our new suite product and elevated service offerings position us for growth as travel and tourism spending in Asia expands.
“Our financial strength and industry-leading cash flow continue to support our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets and our program to return excess capital to stockholders.”
Las Vegas Sands to invest US$8bn in Marina Bay Sands expansion
Las Vegas Sands (LVS) has revealed plans to invest US$8bn in the development of the second phase of Marina Bay Sands. Dubbed as “MBS IR2”, the second phase will feature the development of the Marina Bay Sands Tower IV, with 570 rooms and additional casino space.
The fourth tower will also feature a 15,000-seat entertainment arena, augmenting MBS’s capacity for events and concerts, dedicated space for MICE tourism, and new food and beverage options and nightlife attractions. The project received approval from Singapore’s authorities earlier this year.
The updated cost for the second phase of Marina Bay Sands, which has increased from the initial US$3.3bn investment announced in 2019, includes US$2bn in total land premiums and an estimated US$4.7bn in design, construction, and other associated expenses. The development of Tower IV is slated to begin by June 2025 for completion by January 2031. Pre-opening and financing costs are estimated at US$1.3bn.
According to its latest presentation, LVS anticipates that approximately 25 per cent to 35 per cent of the total project costs of MBS IR2 will be financed through equity, with the remaining 65 per cent to 75 per cent through project financing. The work is part of LVS’ commitment to invest at least SG$4.5bn (US$3.3bn) for the overall expansion of Marina Bay Sands.
As regards Tower III, the company has previously said it is expected to be completed in the second quarter of 2025. Upon completion of the renovation, Marina Bay Sands’ three hotel towers will have 775 suites and 1,069 refurbished rooms.
Patrick Dumont, president and chief operating officer of Las Vegas Sands, said: “Our goal with this tower is to make it something very different, something that is really extraordinary and helps address the Singapore market, which we know quite well now.”
