MBS profit falls 10.3% to US$689 million in Q2, remains bright spot for Las Vegas Sands

[SINGAPORE] Marina Bay Sands (MBS) recorded earnings of US$689 million – about S$888.5 million – for the three months ended Jun 30, down 10.3 per cent from US$768 million in the corresponding year-ago period.

Still, it was an “incredibly powerful quarter” in several segments for the Singapore property, said Patrick Dumont, chairman and CEO of parent company Las Vegas Sands (LVS), in a Wednesday (Jul 22) earnings call.

Noting the success of the World Cup, he said that many high-value patrons are followers of participating teams or players, which unfortunately “just drove a lot of tourism away from our two core markets”.

The lower adjusted property earnings before interest, taxes, depreciation and amortisation (Ebitda) came as MBS’ net revenue slipped 0.6 per cent to US$1.38 billion, from US$1.39 billion previously.

The property’s Ebitda margin for the second quarter was 49.9 per cent, which Dumont said the group was “really happy with”. The latest print was down 5.4 percentage points from Q2 FY2025’s 55.3 per cent.

If MBS had held as expected in its rolling programme, adjusted Ebitda would have been US$37 million lower.

The hold rate is the ratio of the amount won by the casino to the cash buy-in, and is an indicator of a casino’s profitability.

“Our results this quarter reinforce our view that Marina Bay Sands’ structural earnings power has been elevated following our significant product investments, suite renovations, service enhancements and the successful execution of our premium customer strategy,” added Dumont.

The MBS performance comes as LVS, as a whole, missed profit and revenue estimates for the quarter. The developer and operator of integrated resorts attributed this to the unusually low VIP hold in Macau, on top of softer visitation due to the Fifa World Cup, which was held over June and July.

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Breakdown by component

While casino takings fell year on year for MBS, the segment continued to be the largest revenue contributor.

Casino revenue was down 4.1 per cent at US$1 billion in Q2 FY2026, from US$1.1 billion in the year-ago period.

Despite headwinds, mass gaming revenues of MBS grew 5 per cent, compared with that in Q2 FY2025, said Dumont, adding that this “highlights the resilience and underlying strength of the business”.

Besides the casino segment, revenue contributors for the integrated resort included rooms (up 12.7 per cent on the year at US$151 million), F&B (up 16.7 per cent at US$98 million), the mall (up 8.1 per cent at US$67 million), and convention, retail and other (which remained unchanged at US$40 million).

Occupancy for its hotel improved marginally to 95.6 per cent, from 95 per cent in the year-ago quarter.

The average daily room rate picked up 10.6 per cent year on year to US$982, while revenue per available room was up 11.3 per cent at US$939.

The MBS expansion remains on track, Dumont noted, with the opening slated for early 2031.

Weaker group showing

For LVS as a whole, adjusted property Ebitda dropped 16.1 per cent to US$1.1 billion, from US$1.3 billion in the corresponding quarter a year ago.

At the group level, net income for the quarter was down 28.1 per cent at US$373 million, from US$519 million in Q2 2025.

Net income attributable to LVS was US$346 million, 24.9 per cent lower than US$461 million in Q2 2025.

Net revenue for the first three months of 2026 decreased by a marginal 0.7 per cent to US$3.15 billion, from US$3.18 billion the previous year.