MARINA Bay Sands (MBS) posted a 7.2 per cent rise in net revenue to US$1.14 billion for the fourth quarter ended Dec 31, 2024, amid ongoing renovation and refurbishment efforts, as it focuses on “high-value tourism” in Singapore.
All the group’s segments recorded growth, with the casino business – which is the largest contributor to its revenue – rising 6.9 per cent to US$792 million in Q4 FY2024, from US$741 million in the year-ago period, parent company Las Vegas Sands (LVS) reported on Thursday (Jan 30).
However, the integrated resort’s adjusted property earnings before interest, taxes, depreciation and amortisation (Ebitda) declined 1.3 per cent for the period, coming in at US$537 million, from US$544 million in the year-ago quarter. Had the group held as expected on its rolling play, MBS’ adjusted property Ebitda would have been approximately US$2 million lower.
In the casino industry, “hold” refers to the portion of wagers that is retained by the business.
Citi Research analysts George Choi and Timothy Chau noted that the Ebitda figure was a positive surprise for the market, as it came in significantly above US$500 million, beating their forecasts.
Mass gaming revenue from slot machine and non-rolling table wins totalled a record US$746 million, up 27.7 per cent from the year-ago period. The figure beat the previous high by about 9 per cent, the Citi team said.
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Rolling chip volume for Q4 FY2024 was US$8.07 billion, while non-rolling chip drop volume was US$2.34 billion – both up from Q4 of the preceding year.
Revenue from rooms climbed 6.8 per cent to US$125 million, as the average daily rate surged 43.3 per cent to US$927, from US$647 the year before. Hotel revenue per available room was similarly up, by 43 per cent at US$874 from US$611.
Occupancy was largely stable for the quarter, slipping just 0.1 percentage point from the year-ago quarter to 94.3 per cent. Meanwhile, revenue from the food and beverage segment was up 3.3 per cent at US$95 million.
Mall revenue for the quarter grew 7.9 per cent to US$82 million, while quarterly revenue from the convention, retail and other segment surged 22.9 per cent to US$43 million.
In an earnings call, Patrick Dumont, LVS president and chief operating officer, said: “The strong financial results reflect the impact of high-quality investment in a market-leading product and growth in high-value tourism.”
LVS recently invested US$1.75 billion to elevate MBS’ hotel towers, premium gaming areas, public spaces and lifestyle experiences.
As at the end of Q4 FY2024, 702 suites and 925 rooms were in service at MBS. The integrated resort’s Phase II suite renovation and refurbishment programme, which remains on schedule for completion in Q2 FY2025, should bring the number of suites to 775, and rooms to 1,069.
This represents an increase of about 13 per cent in key count, LVS said.
Besides expanding the number of rooms and suites, enhancements have been introduced to the gaming, dining, entertainment and retail offerings.
“We are still in the initial stages of realising the benefits of these new products,” Dumont said.
Chairman and chief executive officer Robert Goldstein agreed that the strong performance in Singapore is “not a one-time thing, nor (has) it peaked”.
“The acceleration (of MBS’ financial performance) year on year is truly exceptional, but I think we’re just at the beginning of a huge growth surge in Singapore,” he said.
LVS has committed US$8 billion to develop its MBS expansion project, which is expected to feature a fourth tower, casino area, luxury suites, an entertainment arena, more capacity for meetings, incentives, conferences and exhibitions, as well as high-end restaurants.
Construction is anticipated to commence in June this year and complete in 2030, with an official opening in January 2031, subject to the necessary government approvals.
LVS was asked about competition from Thailand – which recently approved a draft law to legalise casinos and gambling – and how it would affect the Singapore market.
Dumont said they are markets with “separate and distinct” visitors, while Goldstein added that Asia’s population would be able to support more casinos.
Comparing Asia’s landscape with the US, which has a smaller population but more casinos, Goldstein added: “There is a whole lot of people in Asia, (and) high propensity to gamble.”
