Singapore jab rate aids MBS, no mall sale on cards says LVS

March 9, 2022 Singapore Earnings & Filings

Business recovery for the Marina Bay Sands (MBS) casino resort (pictured) in Singapore, is “clear” thanks to the city-state’s high rate of Covid-19 vaccination among locals, and the expanding list of overseas places able to participate in Singapore’s vaccinated travel lane (VTL) arrangement, says management at the resort’s promoter, United States-based Las Vegas Sands Corp (LVS).

The commentary was cited by brokerage JP Morgan Securities LLC in a Friday memo, after the JP Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum held that day via the U.S.

“Las Vegas Sands sees a clear path to US$2.5 billion of EBITDA,” annually, once mainland China consumers return in numbers to the Singapore market, said JP Morgan, following a presentation at the forum by Daniel Briggs, the casino firm’s senior vice president of investor relations, and referring to earnings before interest, taxation, depreciation and amortisation.

JP Morgan’s memo – by analysts Joseph Greff, Omer Sander and Ryan Lambert – also mentioned the outbound tourism market segment featuring Chinese consumers, was “likely the last for a full recovery”. That was understood to be reference to China’s “zero-Covid” policy. It had been reported last week that China was looking toward a modified strategy that would involve living with Covid-19.

Marina Bay Sands is part of a Singapore casino duopoly featuring also Resorts World Sentosa, run by Genting Singapore Ltd.

The Singapore market was comprised of “one-third Singaporean locals”, “one-third Hong Kong and [other] Chinese”, and the remainder from various foreign source markets, JP Morgan’s memo noted.

In a Friday update, the Civil Aviation Authority of Singapore announced that it would, from March 16, extend the VTL scheme to more cities in Malaysia, Indonesia and India, places all described as “key markets” for the city-state.