Marina Bay Sands reports 33% jump in Q1 earnings even as VIPs bet less
SINGAPORE — Marina Bay Sands (MBS) enjoyed a strong rebound in earnings at the beginning of the year, as the house improved its win percentage at the VIP tables even as the high-rollers bet less.
SINGAPORE — Marina Bay Sands (MBS) enjoyed a strong rebound in earnings at the beginning of the year, as the house improved its win percentage at the VIP tables even as the high-rollers bet less.
Adjusted property earnings before interest, tax, depreciation and amortisation (EBITDA) - the key measure for operating performance - rose 32.7 per cent to US$365 million (S$510 million) in the first quarter ended March 31 from US$275 million in the year-earlier period, MBS parent Las Vegas Sands said on Thursday (April 27).
Total revenue at the integrated resort operator rose 15.9 per cent to US$700 million, with the casino business growing by 21.4 per cent to US$550 million. Hotel room revenue rose 5.6 per cent to US$94 million, food and beverage revenue was flat at US$46 million, mall revenue slipped 2.6 per cent to US$38 million, while convention, retail and other revenue rose 14.3 per cent to US$24 million. Promotional allowances surged 18.2 per cent to US$52 million.
VIP betting turnover fell 7.4 per cent to US$8.9 billion, while the rolling chip win percentage — a measure of the house’s winnings at VIP tables — rose to 2.52 per cent from 1.42 per cent in the previous corresponding quarter. Mass market turnover fell 4 per cent to US$967 million, but the casino’s win rate improved to 29.5 per cent from 29.1 per cent.
Hotel occupancy fell 1 percentage point to 96.9 per cent, but the average daily room rate jumped 10.4 per cent to US$435.
Mr Sheldon Adelson, chairman and chief executive officer of Las Vegas Sands said: “MBS continues to attract increasing numbers of business and leisure visitors from across the region and to deliver the economic benefits of our convention-based business model to Singapore. We are pleased to have established the property as a reference site for other cities and countries that are considering harnessing the power of the convention-based integrated resort business model.”