It is known as "The Lion City."
The place is Singapore, the island country and city-state in Southeast Asia. The location's history dates back at least 800 years, to when it was a maritime emporium known as Temasek.
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Its contemporary era began in 1819 when Stamford Raffles established Singapore as a trading post of the British Empire.
Nearly 14 million people visited Singapore in 2023, up 115.8% from the previous year, according to the Singapore Tourism Board.
The 2023 tally total was about 71.2% of the pre-pandemic trading year 2019 when Singapore logged over 19 million visitors.
There’s a lot certainly to see in Singapore, including the Gardens by the Bay, the Cloud Forest, which has the world’s largest waterfall, and the Orchard Road shopping district.
People also go there to gamble.
Casinos are allowed in Singapore as integrated resorts, and in 2021, the casino sector was valued at $1.8 billion, according to GlobalData, accounting for 1.5% of the global market.
Las Vegas Sands CEO cites Singapore investment
It is the biggest market in the Asia-Pacific region, accounting for 4% of the market size in the region.
Singapore--the name comes from the Sanskrit word for '"lion city"--is an important destination for Las Vegas Sands LVS, where its Marina Bay Sands on Bayfront Avenue is considered one of the city's landmarks.
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CEO and Chairman Robert Goldstein said the company saw "another strong quarter in Singapore despite ongoing disruption from construction."
"The financial results in Marina Bay (reflect) the positive impact of our capital investment program and the growth of high-value tours," Goldstein told analysts on July 24. "The growing appeal of Singapore is a destination enhanced by the robust entertainment and lifestyle event calendars,"
"As we complete the balance of our investment programs, there will be considerable runway for growth," he added.
Goldstein made his comments during the company's second-quarter earnings call, saying that the Las Vegas Sands' financial and operating results for the quarter reflected growth in both Singapore and Macao, China's special administrative region known as the world's gambling capital.
Patrick Dumont, president and chief operating officer, said it expects to complete the revamp of the rooms in Tower 3 at Marina Bay Sands by the second quarter of next year.
Previously, the company expected to complete the project “by Chinese New Year 2025” in late January.
"We're not operating with full capacity," he said. "And so right now, when we look at Singapore, we see strength in the market, we've geared ourselves to focus on high-value tourism, which is coming into Singapore at a very high level."
The company earned 55 cents per share in the quarter, compared with 46 cents a year ago and the consensus figure of 56 cents a share.
Revenue increased 8.7% year-over-year to $2.76 billion during the quarter but was $60 million short of the consensus expectation.
Consolidated adjusted property EBITDA was $1.07 billion, compared with. $1.02 billion consensus and $973 million a year ago.
Analyst: Singapore 'holds the story together'
Marina Bay Sands delivered $512 million in adjusted property EBITDA during the quarter, and Macau's operations contributed $561 million compared to $541 million a year ago.
Analysts adjusted their Las Vegas Sands stock price targets following the earnings report.
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Stifel lowered the firm's price target on Las Vegas Sands to $55 from $65 and kept a buy rating on the shares.
Singapore continues to hold the story together, the firm said, adding that it doesn't see how Las Vegas Sands shares will really work until at least the fourth quarter, which is the timeframe when the majority of their assets will be back in operation.
Until then, the company "will probably continue to bleed away market share, which won't be an easy narrative to sell given an already skittish investor mindset," Stifel said.
The firm noted that "the risk/reward is too favorable to ignore" with expectations and valuation "massively depressed and a Singapore asset that we think is still worth mid-$30s/share."
Barclays lowered the firm's price target on Las Vegas Sands to $52 from $57 and kept an overweight rating on the shares following the quarterly report.
Market softness and renovation disruption drove a margin miss in Macau, but the firm said the company's Singapore momentum remains intact.
Barclays said that Macau estimates are coming down again, and shares are likely range-bound until a recovery resumes.
Susquehanna lowered the firm's price target on Las Vegas Sands to $51 from $59.
The firm noted they reported a second-quarter miss due to significant construction disruption from its large ongoing projects in Macau and Singapore.
Susquehanna also cited the impact of lower-than-expected Macau visitation on base-mass demand, which hurts Las Vegas Sands in particular, given it's the largest operator in Macau.
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