Release Date: April 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: You talked about the much higher market in Macao, but this quarter it looks like the margin flow through and EBITDA actually went in the other direction. How should we think about flow-through in Macao and operating expenses going forward in that market?
A: (Patrick Dumont, President, COO & Director) - The disruptions from renovations, particularly the Cotai Arena, impacted our operations. The arena is a significant asset for entertainment, especially during peak periods like the Chinese New Year. Despite these disruptions, as the market continues to grow, our margins should align with our revenues, which are supported by our investments in non-gaming assets and amenities.
Q: In the quarter, did VIP actually grow faster than mass overall in the industry? And how are you thinking about base mass versus premium mass from here?
A: (Kwan Lock Chum, President, CEO & Executive Director of Sands China Ltd.) - Yes, VIP revenues grew faster than mass revenues quarter-on-quarter. For our operations, premium mass grew slightly faster than base mass, but the difference isn't significant. We expect both segments to continue growing, supported by our strong asset base and diverse offerings.
Q: Can you help quantify the revenue and EBITDA impact from the renovations going on at Londoner and the Cotai Arena?
A: (Patrick Dumont, President, COO & Director) - It's challenging to quantify the exact impact, but the renovations, especially at the Cotai Arena, significantly affect our revenue and EBITDA. The arena's closure during key periods and the ongoing room renovations at the Londoner are expected to cause disruptions, particularly over the summer, but these are seen as necessary for long-term gains.
Q: What's the right run rate for Singapore, and can we sustain above the $500 million mark?
A: (Robert Glen Goldstein, Chairman, CEO & Treasurer) - We believe a $500 million quarterly run rate in Singapore is sustainable and potentially growable. The market's appeal as a tourism destination and our ongoing renovations, which will significantly increase our suite capacity, support this outlook.
Q: How are you managing the balance between reinvestment and the disruptions from renovations in Macao?
A: (Robert Glen Goldstein, Chairman, CEO & Treasurer) - We are maintaining our reinvestment levels despite the renovations. We believe in enhancing our asset quality rather than competing on promotions. Our focus remains on long-term growth and maintaining strong margins.
Q: Could you discuss your interest in the Thailand market and its potential for a resort ahead of Japan?
A: (Robert Glen Goldstein, Chairman, CEO & Treasurer) - We are very interested in Thailand, recognizing its potential to develop faster than Japan. It's still early, but we are actively exploring opportunities given Thailand's large population, accessibility, and status as a top resort destination in Asia.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
