US – Resorts World Las Vegas reports its best ever quarter in terms of revenue and EBIDTABy Phil - 24 February 2023
Resorts World Las Vegas (RWLV) has generated the best results in its short history record in the three months to December 31 2022 with record revenue, EBITDA and EBITDA margin ,driven by the return of conventions to Las Vegas.
Revenues came in at US$227m, a sequential increase from the US$200m generated in the third quarter. EBITDA came in at US$47m up from US$18m in the third quarter with hotel occupancy hitting 89 per cent.
For the full year the casino generated a 120 per cent year-on-year improvement with revenue reaching US$794.4m.
Genting said: “In Las Vegas, visitor volume in the State of Nevada has returned to 93 per cent of pre-pandemic levels with international travel continuing to recover as COVID-19 travel restrictions ease and air travel into Las Vegas continues to grow according to the Las Vegas Convention Visitors Authority,” it said.
“Convention attendance has reached 97 per cent of pre-pandemic levels and 2023 attendance is expected to surpass 2019 levels, as larger conventions return and new sporting events are introduced such as Formula 1 Las Vegas Grand Prix and NFL Pro Bowl in 2023.
“During the current quarter, RWLV achieved record bests in casino revenue, hotel revenue, and F&B revenue all of which show positive movement towards future targeted projections. With the growing return of conventions and business travel to Las Vegas, RWLV will have its highest mix of convention base room nights in 2023. New performances at the Resorts World Theatre and future projects are expected to drive significant foot traffic in 2023 and beyond.”
Nomura analysts Tushar Mohata and Alpa Aggarwal believes EBIDTA will improve further. “RWLV also has quarterly interest charges of US$25 million and depreciation charges of US$60 million, which will drag EBITDA into losses at the net income level,” they said. “Furthermore, we believe that part of the reason for the stronger 4Q22 performance was seasonality in the holiday weeks,” they wrote in a research note.