As Asia drives Q1 revenue growth, Sands scrutinises Thailand.

As Asia drives Q1 revenue growth, Sands scrutinises Thailand.

 Vegas  Sands has stated that it may think about entering the soon-to-be-regulated Thai industry in order to facilitate future company expansion. This comes after a good first quarter in which revenue increased 39.6% to $2.96 billion (£2.3 billion/€2.77 billion).
 Goldstein, the CEO of Sands, once again praised Macau's continuous expansion as a major factor contributing to this increase in Q1.  Since the elimination of pandemic-related regulations in January of last year, the operator has continued to reap the benefits of its success in Macau. 

 Additionally, Sands' Marina Bay Sands location in Singapore saw additional growth.  Like Macau, Singapore lifted all COVID-19 limitations in early 2023, enabling business as usual.

 According to CEO and chairman Robert Goldstein, Sands is now focussing on further expansion in Thailand after achieving such success in two of Asia's most important countries.  When the House of Representatives approved the move last month, the nation took a step closer to legalising casino gaming.

 The country's cabinet must approve new laws before they may take effect.  Goldstein has praised the possibility of Sands' debut in Thailand in advance, calling it a "fantastic" market.

 During an investor call, Goldstein stated, "We definitely have interest in Thailand."  The market is quite interesting on many levels.  simply because of Thailand's enormous population, accessibility, and readiness to attract tourists.  It is undoubtedly, in my opinion, Asia's top vacation destination city.

 It might even occur more quickly than in Japan.  I believe it is possible.  We still need to work on understanding the figures, but it's still early.

 Sands' dissatisfaction with New York
 The scenario in New York is much different, notwithstanding the hoopla surrounding a potential debut in Thailand.  Sands has previously discussed bidding for one of three additional downstate licenses and possibly launching in the US state.

 But the New York State Gaming Commission said last month that licenses probably won't be granted until the end of 2025.  It claimed that the drawn-out approvals process was to blame for this. 

 Patrick Dumont, the president and chief operating officer of Sands, acknowledged that this was disheartening news.  He also criticised New York authorities for their lack of clarity, but he also mentioned that Sands is still optimistic about a possible debut.

 Dumont expressed his disappointment, saying, "We've been working in New York for a long time and we thought it was going to happen in 2024."  I don't think we have any real certainty, but they are now stating 2025 or 2026.  We've invested a lot of time and effort in New York, so to be honest, it's puzzling and upsetting. 

 "We wish they had discovered it and informed us.  We simply don't know.  We will therefore continue to hold out hope that things improve there.

 Analysing Q1 revenue
 Returning to Q1, the data clearly demonstrates Macau's rise.  Revenue from operations in the area reached $1.81 billion, a 41.6% rise over the previous year.

 With revenue climbing 28.2% to $771 million, Sands' Venetian Macau turned out to be the most successful venue in the area.  Growth was also observed in the Plaza Macau, Four Seasons Macau, Londoner Macau, and Parisian Macau establishments.

 Singapore's Marina Bay Sands generated $1.16 billion in sales, a 36.6% increase over the previous year.  Sands further pointed out that intersegment eliminations totalling $73 million were deducted from the final revenue amount.  As a result, the operator earned $2.96 billion in net gaming revenue. 

 In terms of income generation, casino operations accounted for almost $2.29 billion, a 44.6% increase.  All other operator categories also had increases in revenue, with rooms reaching $330 million, food and beverage $150 million, mall $174 million, and conference, retail, and other revenue $77 million.

 Increased revenue at Sands balances out increased spending.
 Moving on to expenses, Q1 operating costs increased by 28.7% to $2.24 billion.  Sands spent $1.76 billion on resort operations, which was by far the largest area of expenditure.

 The pre-tax profit for Sands was $600 million after net finance charges of an additional $117 million were deducted.  This was up 297.7% from the previous year.

 Sands reported a $89 million loss due to non-controlling interests and paid $17 million in taxes.  As a result, its net profit at the end of the first quarter was $494 million, up 236.1 percent from $147 million in 2023.

 Additionally, adjusted property EBITDA for the first quarter was $1.21 billion, a 52.4% increase from the previous year. 

 "Our continuous investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and our program to return excess capital to stockholders are all supported by our financial strength and industry-leading cash flow," CEO Goldstein stated.