Las Vegas Sands CEO: Marina Bay Sands on the way to US$500m in quarterly EBITDA
Robert Goldstein spoke at the Bernstein 39th Annual Strategic Decisions Conference in New York.
Singapore.- Robert G. Goldstein, the chairman and CEO of Las Vegas Sands, has said he expects Marina Bay Sands to soon hit quarterly EBITDA of US$500m. Speaking at the Bernstein 39th Annual Strategic Decisions Conference in New York, Goldstein expressed his optimism about the property’s financial performance.
He said EBITDA levels in Singapore have already recovered to the levels seen in 2019 and said he expected the venue could achieve annualized EBITDA of US$2bn. He emphasised the importance of increasing Chinese visitation and enhancing the quality of lodging and gaming experiences.
However, the CEO acknowledged two factors that could impact its target. Marina Bay Sands is undergoing a US$1bn renovation project, which is expected to conclude next year and has yet to witness a substantial resurgence in Chinese VIP clientele.
Goldstein said the company will focus on improving Sands China’s results in Macau, which will contribute significantly to the company’s overall performance. He highlighted the importance of revitalising Macau’s base mass segment and attracting non-Guangdong and non-Hong Kong visitors. He emphasised that Macau’s recovery so far has primarily been driven by premium clients and that restoring base mass is crucial due to its favourable profit margins.
Marina Bay Sands recently reported that adjusted property EBITDA rose from US$121m to US$394m year-on-year in the first quarter of the year. That represents approximately 93 per cent of the EBITDA recorded in the first quarter of 2019. The company posted US$848m in revenue.
The company has recently completed the development of over 850 hotel rooms in Towers 1 and 2 of the complex as part of its renovation project. The transformation is expected to be completed by the end of 2023.
A week ago, Las Vegas Sands and Sands China held a celebration at The Londoner Macao, commemorating the full completion of the Cotai property. “The Journey Begins” event also hailed the start of the casino operators’ new 10-year gaming concession.
Last year, Sands China announced an investment of US$3.7bn (MOP30.2bn) in Macau over the next decade.
