Singapore’s Marina Bay Sands exceeded all expectations in Q2, leaving some analysts to suggest it is only a matter of time before the integrated resort exceeds 2019 gaming revenues.
In a Friday note, CBRE Equity Research senior analyst John DeCree said this milestone would likely take place as early as next year after MBS recorded EBITDA of US$319 million in the June quarter – well above street estimates of around US$250 million.
“The gaming revenue recovery at Marina Bay Sands has been much better than expected … and we still see plenty of room for further recovery at MBS,” said DeCree, pointing to the fact that mass and slots revenue has already reached 95% of 2019 levels and VIP 75% in Q2.
“The depth of the local market is apparent, and with Macau virtually shut down still, Singapore remains a key beneficiary of displaced gaming customers across regional Asian markets.
“We expect gaming revenue at MBS will ultimately exceed 2019 levels, likely in 2023, similar to trends seen at US casinos.”
In a separate note following Las Vegas Sands’ (LVS) 2Q22 results release last week, Bernstein’s Vitaly Umansky, Louis Li and Shirley Yang said they did not expect MBS to return to pre-COVID levels until international travel out of China resumes, but added “the demand in Asia is clear.”
As reported by IAG, LVS Chairman and CEO Robert Goldstein told analysts during the company’s Q2 earnings call that the recovery trajectory of MBS remains largely dependent on higher flight volumes across Asia.
“The biggest thing we are seeing is that airlift is opening up but that also continues to be the most challenging part of the Singapore recovery,” Goldstein said.
“We are getting a lot of good business out of the region – especially Indonesia and Malaysia – but I think there is a lot more opportunity as airlift returns.
“Chinese monthly visitation numbers are still less than 50% of what they were pre-pandemic so although we are delighted by Singapore and the numbers reflect that, there is reason to be more optimistic in the months ahead.”
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