Marina Bay Sands (MBS) closed the quarter with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $4 million.But at least one analyst believes the Las Vegas Sands (NYSE: LVS) facility could do even better.
In a recent memo to clients, CBRE Research analyst John DeCree said MBS can continue to deliver impressive results.
That's because Chinese visits to Singapore are only half what they were before the coronavirus outbreak.An increase in this percentage should benefit Singapore's two integrated resorts, the other being Genting's Resorts World Sentosa.
さらに、現在進行中のカジノフロアの工事中断が終息に向かい、200のより質の高いスイートルームがオンラインに復帰することで、MBSは価格設定を推進し、より価値の高い顧客に対応できるようになります」と、デクリー氏は書いている。Marina Bay Sands is the only LVS property outside of Macau and one of the world's most profitable casinos.It competes with Venetian Macau, another Sands establishment, for the top spot.
Marina Bay Sands has room to run
Decree's assessment of Marina Bay Sands' upside potential seems spot on.During Sands' recent second-quarter earnings call, Chief Financial Officer Patrick Dumont noted that the company is making significant investments in casino resorts in Singapore.
That investment includes the expansion of Towers 1 and 2.These improvements are not yet fully launched and, when implemented, could improve the facility's margins and EBITDA.
“Our largest suite, the 200 multi-day suites, will be the last to come online. The full revenue potential will be realized only after these suites are online, Dumont said on a conference call.
EBITDA for the second quarter was $2 million, putting MBS on track to meet Sands' annual EBITDA target of $4 billion for the year.Gross gaming revenue (GGR) from mass gamblers was $3,200 million in the June quarter, up 20% from the same period in 6.
Suns bullish on Singapore
Las Vegas Sands is often seen as the story of Macau, but there is no denying the importance of MBS to the overall investment theory.Also, the operator's commitment to Singapore is undeniable.Dumont points out that Sands "has a very strong commitment to the city-state's future success."
The market "has changed for the better. We've invested a lot and we're definitely producing the best product ever. The customer response has been very strong, but we're still in flight." added.
Marina Bay Sands is an integral part of Singapore's business and leisure travel industry and Sands benefits from its presence.According to the World Travel and Tourism Council (WTTC), the country ranked ninth in the world in tourism spending last year.
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