Strong recovery at MBS props up Las Vegas Sands’ earnings in Q2

THE easing of Covid-19 restrictions in Singapore has helped to accelerate the recovery at Marina Bay Sands (MBS), a bright spot in Las Vegas Sands’ financials for the second quarter ended Jun 30.

The world’s largest casino company on Wednesday (Jul 20) reported total adjusted property Ebitda (earnings before interest, taxes, depreciation and amortisation) of US$209 million, down from US$244 million in the prior year.

This was driven mainly by contributions from MBS with an adjusted property Ebitda of US$319 million – nearly tripling from US$112 million the previous year – as the bulk of the group’s Macau casinos remained in the red.

MBS was also the star net revenue contributor to the group’s topline for the quarter, delivering US$679 million compared with US$327 million in Q2 of FY2021. Its adjusted property Ebitda stood at 47 per cent of net revenue, as opposed to just 34.3 per cent the previous year. 

On the group level, Las Vegas Sands reported a net revenue of US$1.05 billion and operating loss of US$147 million, compared with the previous year’s net revenue of US$1.17 billion and operating loss of US$139 million. 

Net loss from continuing operations widened to US$414 million from US$280 million in Q2 FY2021, resulting in a wider net loss per common share of US$0.38 compared with US$0.25 a year ago.

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The group in its press statement said pandemic-related restrictions continued to impact its financial results, but that it was “pleased to see the recovery in Singapore accelerate” during the quarter.

“We remain confident in the recovery of travel and tourism spending across our markets. Demand for our offerings from customers who have been able to visit remains robust, while pandemic-related travel restrictions continue to limit visitation and hinder our current financial performance,” commented Robert Goldstein, chairman and chief executive of Las Vegas Sands.