Las Vegas Sands has released its Q4 2023 earnings report, demonstrating substantial $2.92 billion in revenue and impressive 161% year-on-year growth. Despite this remarkable progress, the revenue figure remains 16.9% below Q4 2019 levels, underscoring the ongoing impact of the COVID-19 pandemic on the gaming sector.
A notable highlight of this quarter’s earnings is the stellar performance of Marina Bay Sands in Singapore, contributing $1.06 billion to the overall revenue. This represents a remarkable 55.6% growth from the previous year and a substantial 24.4% increase from Q4 2019, showcasing the resilient and steady development of business operations in Singapore.
In contrast, Macau’s operations are still on the path to full recovery, generating $1.86 billion in revenue from the company’s five casino resorts and other ventures. While this reflects an impressive 319.6% increase from Q4 2022, there is a lingering gap of 16.9% compared to Q4 2019. The Venetian Macau emerged as the leading contributor, generating $748 million, followed by The Londoner Macau and The Parisian Macau with $589 million and $222 million, respectively.
Despite the 16.9% gap in net revenue compared to 2019, adjusted property EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was a closer match. Q4 2023 recorded $1.2 billion in adjusted property EBITDA, only a 13.7% decrease from the $1.39 billion in Q4 2019. This suggests that the metric may be the first to recover to pre-Covid levels before net revenue.
Positive signals emanate from the Asian gaming market as revenue in Singapore climbs, year-over-year growth strengthens, and the Macau revenue gap gradually narrows. Although Las Vegas Sands has yet to meet its 2019 figures, MGM China reported a robust 10% growth from Q3 2019 to Q3 2023, achieving pre-Covid levels.
Furthermore, Macau’s Gaming Inspection and Coordination Bureau reported a noteworthy MOP$183.1 billion (US$22.7 billion) in 2023, reflecting a growth trajectory with a 334% increase from 2022. Although still 37.4% less than 2019, this signals positive momentum, with expectations of reaching or surpassing pre-Covid revenue levels in the coming years.
Beyond Macau, the gambling market in Asia remains strong, as evidenced by the Philippines’ record-high revenue of Php285.27 billion ($5.09 billion) in 2023, reflecting a substantial year-on-year growth of 33.1%.
The bright future of Asian gaming, marked by resilience and growth, and significant developments like the establishment of the first Japanese casino resort in Osaka and the awarding of a five-star hotel rating to the Mohegan Inspire, remains promising, even if optimal conditions are not yet fully realized.
