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Impressive Singapore results drove an estimate-beating quarter

"We set quarterly records for both net revenue and adjusted property EBITDA during the quarter. Strong revenue growth and margin expansion in Macau, together with the continuing ramp of growth in all areas at Marina Bay Sands in Singapore contributed to excellent financial performance overall."


  • Adjusted Property EBITDA $901.6MM and Net Revenue of $2.35BN
  • MBS: Adjusted Property EBITDA of $405.4MM and margin of 55%
    • "Record VIP, mass gaming and slot volumes coupled with steady growth in non-gaming revenue streams.. reflect the broad appeal of the property to Singapore's visitors from across the Asian region. Looking ahead, as the property continues to mature, we are confident that Marina Bay Sands will generate significant increases in business and leisure visitation to Singapore"
  • Macau: Adjusted Property EBITDA $391.6MM and a 33% margin 
    • "The growth of our higher margin mass table and slot businesses, together with the contribution from the important non-gaming components of our integrated resort business model, continue to drive significant margin improvement at Sands China"
  • Las Vegas: Adjusted Property EBITDA of $92.9MM
    • "Quarterly results clearly reflect the implementation of our strategy to focus on cash-paying corporate group, convention and FIT customers, and to optimize our promotional activity for gaming customers as the Las Vegas market continues to recover. Table games drop was up modestly during the quarter, while slot handle naturally reflected the contraction expected with the decreased promotional activity. Cash revenues from occupied rooms increased by more than 18% compared to the same quarter last year. In addition, 97% of our occupied rooms during the quarter were sold to cash paying customers, compared to just 70% in the second quarter of 2010."
  • "Corporate expense ....increase was primarily driven by higher incentive compensation expenses attributable to the company's improved financial and operating performance, as well as increased legal fees."


  • Ramp process is still ongoing at MBS. Demand is starting to outpace supply.
  • Opening of Galaxy Macau has severed as an additional feeder to the Cotai market
  • The Plaza casino is primarily designed to cater to the VIP segment of the market
  • Embarking on a $100MM investment (ahead of Chinese New Year end in 2012) to enhance junket relations
  • Retail sales at the Venetian Grand Canal shops were up 50% and 70% at the shops at Four Seasons.
  • Lots 5 & 6: They have finalized franchise agreements with two brands on lot 5 and the property is still on target to open 1Q2012. Lot 6A (Sheraton rooms) will open in 3Q2012 with a casino and 2,000rooms. Lot 6B in 2013 will feature 2,000 additional rooms and suites (opening early 2013). The addition of 6,000 rooms will serve as a catalyst to grow their MICE business.
  • Ed Tracy will be promoted to CEO of Sands China


  • Is the summer in Singapore seasonally the strongest?
    • Based on July, it seems like it will be the best quarter of the year and it does seem that summer is the peak but they are still ramping so it's too early to tell. LVMH is still opening as are two night clubs.
  • Struggling more VIP growth at Sands. They are disappointed that they didn't do better at Four Seasons but they will. They're working on improving their junket relationships which should help grow their junket business
  • More development on Cotai is helping support the market growth there by creating critical mass
  • S'pore trends: higher spend per win; more repeat customers
  • S'pore credit terms unchanged
  • Macau Junket/direct play %: 4 to 1
  • Macau $125MM capital campaign target for completion by Chinese New Year 2012
  • S'pore refinancing talks: not started yet
  • Venetian mass market: Galaxy Macau opening is having a positive effect but hasn't been material
  •  S'pore junket process: still thinking it will be done by end of 2011. If RWS gets approval for junkets, then MBS will too.
  • Junkets at Venetian Macau: in 12-18 months, may return to better (low-teens) VIP share. May not see impact of new junket relationships until 1Q 2012.
  • Good convention calendar for rest of year allows good management of cash & comps.
  • Vegas room demand in July: pretty good, about what they expected.
  • S'pore ETG:
    • No room for additional capacity
    • $650-675 slot win/day (weekday); $1,000-1,100 slot win/day (weekend)
  • S'pore keeps ramping, particularly mass and slot business
  • Q2 S'pore expenses are a good run rate for the rest of year
  • Sites 5&6 estimates: 200 tables per casino; 110 in Plaza; 400-500 tables in total; 120-130 ETGs; no limitation on ETG but table limitation of 50 seats equal one table game
  • Promotional spending: more pressure in Macau
  • Sites 5 & 6: have enough workers to be on target
  • S'pore market far from being saturated
  • No evidence of VIP slowdown in Macau, very frothy environment