Sands Surpasses Macau Market Growth, Sets Sights on Exceeding $30 Billion Gross Gaming Revenue
Sands, a leading integrated resort operator, has made significant strides in the Macau market, surpassing its growth in revenue. According to the company's recent conference call transcript, the Macau market grew 6% in Q4 of 2024 compared to the fourth quarter of 2023, while mass gaming revenue increased by 5%. This trend is expected to continue, with Sands predicting that gross gaming revenue will exceed $30 billion in 2025 and beyond.
Rob Goldstein, Chairman and CEO of Sands, emphasized the company's confidence in its future success in the competitive Macau market. He stated, "We believe the Chinese economy will grow and the Macau market will grow as well. Our assets give us a strong advantage. The scale and quality of our properties enable us to tell our offerings to attract the most profitable customer sets."
Sands' strategy has been centered on investing in high-quality assets that have both scale and exclusivity, allowing it to capture higher-margin customers and drive growth. As Goldstein noted, "Our approach will enable us to grow faster in the long term with our share of EBITDA in the Macau market and generate industry-leading returns from invested capital."
The company's performance in Macau was highlighted by a solid EBITDA despite having 20% fewer rooms available due to the renovation of the Londoner hotel. Additionally, Sands opened the Londoner Grand Casino in September 2024, with 315 suites operational and an additional 1,500 suites and rooms expected to be completed by May 2025.
Meanwhile, in Singapore, Sands delivered a strong quarter, with $537 million in adjusted property EBITDA. Mass gaming revenue reached $746 million, reflecting a 71% growth from the fourth quarter of 2018 and a 28% increase year-over-year. This success was attributed to the positive impact of capital investment programs and the growing appeal of Singapore as a destination.
The company's confidence in its future prospects was further emphasized by Patrick Dumont, President and COO, who noted that there is still considerable runway for growth in Singapore with the balance of their investment programs expected in the first half of 2025. When asked about the impact of tourism to the Macau market, Dumont mentioned that the celebration of the 25th anniversary of the special administrative region had a notable effect on EBITDA.
Overall, Sands has demonstrated its commitment to growth and investment in the Asia-Pacific gaming industry, with a focus on delivering high-quality assets and driving customer engagement. As the company continues to push forward, it is clear that it is poised for continued success and increased market share.
