Las Vegas Sands’ main Macau operations are ailing as China doubles down on zero-Covid. Yet Sands’ New York shares rose nearly 6% on Thursday after results revealed it is having better luck in Singapore.
The Lion City now accounts for three quarters of Sands’ top line, up from 22% in 2019. The Marina Bay resort’s adjusted EBITDA of $343 million in the three months to September was the highest since the onset of the pandemic.
By contrast, in Macau, formerly the world’s largest gaming hub, Sands suffered a loss of $152 million, as gaming revenue sunk to around 10% of 2019 levels. Rival Genting is also on track to deliver quarterly EBITDA of around 78% of its pre-pandemic levels, thanks to its Sentosa property, according to Citi.
Singapore’s resurgence is surprising, given volumes at Changi airport were still only around half 2019 levels in July and August. That implies as travelers gradually return to the city-state, Sands and Genting’s hot streak will get hotter. (Reuters)