Pandemic-related measures were in place across both Macao and Singapore in Q3 last year. While these were less strict than earlier in the pandemic, they impacted Sands’ performance during the quarter.
However, this year has been very different for Sands, with both Macao and Singapore having withdrawn almost all remaining measures. This means there are no longer restrictions on travel into each region, while casinos can operate as normal.
Sands says this impact has been felt in each quarter of 2023, with its performance improving quarter-on- quarter. Q3 is the latest period of growth for Sands, with the significant increase in revenue evidence of this.
“We were pleased to see the recovery in travel and tourism spending in both Macao and Singapore progress during the quarter,” Sands chairman and CEO Robert Goldstein said. “We remain deeply enthusiastic about our opportunities for growth in both markets in the years ahead.
“In Macao, we were pleased to see the recovery in both gaming and non-gaming segments progress during the quarter. We remain enthusiastic about the opportunity to continue our investments to enhance Macao’s tourism appeal to travellers from throughout the region, including to foreign visitors to Macao.
“In Singapore, Marina Bay Sands again delivered outstanding levels of financial and operating performance. Our new suite product and elevated service offerings position us to deliver future growth as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues.”
Sands casino revenue surpasses $2.00bn
Taking a closer look at Sands’ performance in Q3, it is clear that casino remains by far its core business. Revenue from casino in the quarter amounted to $2.01bn, up 215.2% from last year.
Rooms revenue also increased 178.1% to $342m, while food and beverage revenue hiked 90.2% to $156m. Sands also noted a 68.9% rise in mall revenue to $201m while convention, retail and other revenue jumped 100.0% to $88m.
Macao revenue up 593% in Q3
As for geographical performance, Macao remains Sands’ primary market. Revenue in Macao in Q3 rocketed 592.4% year-on-year to $1.79bn.
The Venetian Macao led the way with $723m in revenue, ahead of The Londoner Macao on $518m. The Parisian Macao posted $244m in revenue, The Plaza Macao and Four Seasons Macao $192m, and Sands Macao $83m. A further $29m came from ferry operations and other activity.
Meanwhile, revenue at Marina Bay Sands in Singapore also jumped 34.3% to $1.02bn. The operator also reported $61m in intercompany royalties.
Sands posts Q3 net profit
Turning to spending, operating costs were 78.3% higher at $2.11bn, with the main outgoing being resort operations at $1.68bn. Sands also noted $117m in net finance costs.
Pre-tax profit stood at $571m, in contrast to the $320m loss in 2022. Sands paid $122m in tax and also accounted for a $69m loss from non-controlling assets. As such, it ended Q3 with a net profit of $380m, compared to a $239m loss last year.
In addition, adjusted property EBITDA hiked 487.4% from $191m to $1.12bn.
Year-to-date revenue reaches $7.46bn
Looking at Sands’ year-to-date performance, revenue for the nine months to 30 September hit $7.46bn. This was 149.5% higher than $2.99bn at the same point in 2022.
Macao revenue jumped 297.0% to $4.70bn and Singapore 52.0% to $2.79bn.
Casino revenue topped $5.41bn, with rooms revenue at $881m and food and beverage $423m. Some $535m in revenue came from mall activities and $207m convention, retail and other.
Spending increased 61.8% to $5.85bn and financial costs amounted to $386m. As such, this left a pre-tax profit of $1.18bn, compared to a $1.10bn loss in 2022.
Sands paid $221m in tax and accounted for $123m in non-controlling assets loss. This left a net profit of $839m, which was 58.1% lower than the previous year as the Q3 2022 figures included $2.90bn income from discontinued operations.
Adjusted EBITDA for the nine-month period was $2.89bn, up 466.1% from last year.
“Our commitment to making industry-leading investments in our team members, our communities and our integrated resort property portfolio positions us exceptionally well to deliver strong growth in the years ahead,” Goldstein said.
“Our financial strength supports our ongoing investment and capital expenditure programmes in both Macao and Singapore, our pursuit of growth opportunities in new markets and the return of capital to stockholders.”