Operator News

China – Sands CEO predicts Macau can grow to $40bn sector quicker than analysts believe

By Phil - 19 October 2023

Las Vegas Sands CEO believes the Macau casino sector could generate annual revenues of $40bn, much quicker than analysts are currently predicting.

Speaking as Sands announced that its quarterly revenues has come in at $2.8bn, compared to $1.01bn in the prior year quarter, Robert G. Goldstein, chairman and chief executive officer, said: “We are only eight months into our post-COVID reopen. These are early days. We began in Q1 with $400m of EBITDA; Q2, we did $540m of EBITDA; and Q3 is now at $630m of EBITDA. A relevant question is, can the market grow to $30bn, $35bn, $40bn of GGR and beyond? We are firm believers that it will and may occur on a much shorter timetable that anyone realizes. This underscores our confidence that the returns will be generated by our capital investment programs in our portfolio. We are staunch believers in the growth of Macao market near and long-term.”

Mr Goldstein believes the money invested into transforming Sands Cotai into the Londoner will see it become the number one casino in the market.

“We’ve always believed that completed Londoner will meet perhaps exceed the earning power of the nation,” he said. “Our future growth in Macao is tethered by these powerful assets which have all the variables necessary to drive growth in years ahead. Whether it’s rooms, gaming capacity, retail, entertainment, food and beverage, we have stellar assets.”

The quarter ended September 30, 2023 brought operating income of $688m, compared to an operating loss of $177m in the prior year quarter.  Net income from continuing operations in the third quarter of 2023 was $449m, compared to a net loss from continuing operations of $380m in the third quarter of 2022. 

Mr. Goldstein added: “We were pleased to see the recovery in travel and tourism spending in both Macao and Singapore progress during the quarter.  We remain deeply enthusiastic about our opportunities for growth in both markets in the years ahead.”

“In Macao, we were pleased to see the recovery in both gaming and non-gaming segments progress during the quarter.  We remain enthusiastic about the opportunity to continue our investments to enhance Macao’s tourism appeal to travelers from throughout the region, including to foreign visitors to Macao.  Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world center of business and leisure tourism positions us exceedingly well to deliver strong growth as the recovery in travel and tourism spending proceeds.

“In Singapore, Marina Bay Sands again delivered outstanding levels of financial and operating performance.  Our new suite product and elevated service offerings position us to deliver future growth as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues.

“Our commitment to making industry-leading investments in our team members, our communities and our Integrated Resort property portfolio positions us exceptionally well to deliver strong growth in the years ahead.  Our financial strength supports our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and the return of capital to stockholders. 

“After reinstating our dividend last quarter, I am pleased to announce that our board of directors has authorized $2bn of share repurchases under our stock repurchase program through 2025.  We look forward to utilizing our share repurchase program to return excess capital to stockholders.”