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.
While all other segments recorded growth, the casino business – which is the largest contributor to revenue – registered a 6.9 per cent increase to US$792 million in Q4 FY2024, from US$741 million previously.
But the integrated resort’s adjusted property earnings before interest, taxes, depreciation and amortisation (Ebitda) declined for the period, parent company Las Vegas Sands (LVS) reported on Thursday (Jan 30).
Adjusted property Ebitda came in at US$537 million, slipping 1.3 per cent 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.
But 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 US$746 million, marking an all-time record. This was up 27.7 per cent from a year previously. The figure beat the previous high by about 9 per cent, the Citi team said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
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 hotel revenue per available room similarly expanded 43 per cent to US$874, from US$611.
Occupancy was largely stable for the quarter, slipping just 0.1 percentage points from the year-ago quarter to 94.3 per cent. Meanwhile, revenue from food and beverage was up 3.3 per cent to US$95 million.
Mall revenue 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 the casino industry, “hold” refers to the portion of wagers that is retained by the business.
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 approximately 13 per cent in key count, LVS said.
Besides expanding the number of rooms and suites, enhancements have been and are being introduced to 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 to pumping 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 Jan 2031, subject to the necessary governmental approval.
LVS was asked about opportunities in Thailand – which recently approved a draft law to legalise casinos and gambling – and how they 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.”
