Marina Bay Sands to return to pre-pandemic levels in two years, analysts say
Analysts at Sanford C. Bernstein Ltd. predict the casino operator will see business grow in the second quarter and accelerate into 2023.
Singapore.- Marina Bay Sands is expected to return to pre-pandemic levels of business in two years’ time following the reopening of Singapore’s borders to all fully vaccinated travellers on April 1. Sanford Bernstein forecast that Marina Bay Sands’ annual EBITDA will recover to over US$1.7bn by 2024 and grow to approximately US$1.9bn by 2025, with EBITDA margins improving to 51 – 52 per cent returns.
Analysts pointed out local authorities aim to increase passenger traffic to around 50 per cent of pre-pandemic levels by the end of this year, from around 18 per cent in mid-March.
Vitaly Umansky, an analyst at Sanford C. Bernstein Ltd said: “We expect a ramp-up in business activity at Singapore integrated resorts to start in the second quarter, and accelerate into 2023.”
Umansky added that the agency expects the casino operator to achieve a significant leap in performance following the completion of the second phase of its expansion beyond 2025.
Las Vegas Sands has recently announced that the Singapore Tourism Board has allowed the company to extend the deadline for its SGD4.5bn (US$3.31bn) expansion project at Marina Bay Sands casino resort to April 8, 2023.
In 2019, Las Vegas Sands had committed to invest S$4.5bn (US$3.3bn) in the expansion of the Marina Bay Sands hotel within eight years. However, the project was delayed due to the Covid-19 pandemic. The company has also started a separate US$1bn renovation project at Marina Bay Sands.
