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Las Vegas Sands (NYSE: LVS ) has been on a tear for more than two years operationally and on the stock market, partly because of an extremely profitable casino in Singapore. In just the last quarter alone, Marina Bay Sands generated $284.5 million in property EBITDA and a 49% EBITDA margin.
But Marina Bay Sands isn't the only casino in Singapore, and I was shocked to see that Las Vegas Sands' casino is actually performing worse than Genting's Resorts World at Sentosa. Genting's Singapore resort generated $435.1 million in EBITDA during the first quarter, far more than what Sands reported, even if you adjust for the latter's bad luck (which would have brought EBITDA to $311 million).
The rival's revenue growth was even more impressive. Marina Bay Sands revenue grew just 4.4% sequentially in the first quarter while Resorts World Sentosa grew nearly 18% from the fourth quarter. And that should continue to improve once the company opens its Universal Studios Singapore park in two weeks.
The comparison should be taken with a grain of salt, but the numbers are very interesting. Marina Bay Sands is a convention-driven resort in the heart of downtown Singapore, while Resorts World is like Disney World with gambling.
The envy of the room
Of course, competitors would love to have a casino like Marina Bay Sands in their portfolios. MGM Resorts (NYSE: MGM ) spent more money to build CityCenter than either Singapore development cost and will take a year to generate the EBITDA both generated in just one quarter.
Las Vegas Sands has done well in Singapore, but with less than half of the market share I wonder if the company could be doing even better?