Following the death of businessman Sheldon Adelson on January 12, the new chairman of Las Vegas Sands reaffirmed that Macau and Singapore remain the group’s core markets. It’s easy to understand why. Indeed, the former Portuguese colony has established itself as the world’s leading gaming capital.
For the city-state, recently published figures show that the Marina Bay Sands hotel-casino has become the American operator’s most profitable complex, as the Covid-19 coronavirus pandemic hits the entire world.
Results down due to the health crisis
During the fourth quarter of 2020, Marina Bay Sands in Singapore generated profits of 191.7 million Singapore dollars (SGD), or approximately €119.3 million. This represents a 68% decrease compared to the same period last year but more than double the 92.2 million SGD (57.3 million euros) accumulated during the previous three months. For the whole of 2020, profits fell by 76% to 504.5 million SGD (313.9 million euros), compared to 2.19 billion SGD (1.36 billion euros) earned in 2019.
Of course, this drop in profits is entirely understandable during this international health crisis. Indeed, due to the global Covid-19 coronavirus pandemic, Singapore’s two casino hotels were forced to close their doors for three months between April 7 and early July. They then had to contend with air travel restrictions that continue to hamper tourism in the city-state to this day.
Marina Bay Sands’ 2020 results are hardly positive. Net revenue reached only SGD 1.66 billion (€1 billion), which is roughly half the figure for 2019. However, the Las Vegas Sands hotel-casinos in Macau actually posted losses in 2020.
Investments that are still relevant today
The American operator’s new CEO, Rob Goldstein, seems rather optimistic about the future. Indeed, he notes that the recovery continues to be felt in Singapore and Macau. He believes that tourism will gradually resume in these markets, which should logically imply an increase in the group’s revenues.
Whatever happens, Las Vegas Sands’ financial strength remains undeniable. Despite a 67.3% decline compared to 2019, it still managed to generate net revenue of US$1.15 billion (€940 million) in the fourth quarter of 2020.
This could allow it to continue the investments announced before the international health crisis. The Marina Bay Sands expansion, budgeted at SGD 4.35 billion (€2.7 billion), therefore remains on track. It will allow the hotel-casino to add a new 15,000-seat performance hall, a fourth tower adding 1,000 additional hotel rooms, and a retractable rooftop containing a swimming pool and restaurant.
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