## Sands Entertainment Returns to Profit in 2021, Income Surpasses $1 Billion – Casinos & Gaming – iGB
The Las Vegas operator Sands Entertainment returned to profitability in the 2021 fiscal year, with earnings exceeding $1 billion (£734.4 million/€879.5 million) for the first time due to business expansion.
Sands Entertainment returned to profitability in 2021, with income exceeding $1 billion.
Income for the 12 months ending December 31, 2021, reached $1.1 billion, a 58.0% increase from $694.2 million in the previous year.
Gaming income increased by 60.7% to $766.3 million, while food and beverage income also grew by 49.7% to $167.8 million, hotel income increased by 53.8% to $109.8 million, and other income increased by 55.2% to $52.6 million.
Breaking down this performance, the operator’s casino resort properties in Nevada, including The Strat Hotel, Casino & SkyPod, Aquarius Casino Resort, and Edgewater Hotel & Casino Resort, saw income jump 55.5% to $389.7 million.
Also in Nevada, Sands Entertainment’s local casino income, including Charlie’s Boulder in Arizona, Charlie’s Decatur in Arizona, Gold Town Casino, Lake’s Casino & RV Park, and the Palace Station Hotel Casino, grew by 41.5% to $159.9 million.
In Maryland, income at the Rocky Gap Casino Resort increased by 51.6% to $78.2 million, while Sands Entertainment said income from its distributed gaming operations in Nevada and Montana, including its branded taverns in Nevada, jumped by 68%.
A surge from zero to $467.6 million.
This fiscal year’s expenditures and overall operational costs rose by 22.1% to $930.5 million. Non-operating costs amounted to $3.8 million, as $62.9 million in interest charges were largely offset by $60 million in other earnings.
This resulted in a pre-tax gain of $162.2 million, compared to a deficit of $136.6 million in 2020, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 164.5% to a record $291.7 million.
Golden Entertainment paid $436,000 in income taxes, resulting in a net profit of $161.8 million at the end of the year, compared to a net loss of $136.6 million at the end of 2020.
Examining the fourth quarter, revenue for the three months ending December 31 increased 37.2% year-over-year to $282 million. Gaming revenue rose 29.8% to $191.2 million, while food and beverage revenue increased 41.3% to $44.8 million, room revenue climbed 71.1% to $29.6 million, and other revenue increased 76.3% to $16.4 million.
Operational costs rose by 19.7% to $247.5 million, while non-operating costs decreased by 12.6% to $15.3 million, almost entirely due to interest expense.
Pre-tax profit reached $19.2 million, compared to a net loss of $18.6 million in 2020, while adjusted EBITDA also increased by 72.1% to $67.8 million.
After paying $70,000 in income taxes, Golden Entertainment ended the fourth quarter with a net profit of $19.1 million, compared to a net loss of $18.5 million in 2020.
Light & Wonder’s leader, Blake Sartini, declared that the company experienced an exceptional year, culminating in a robust final quarter. Despite facing significant obstacles in 2021, they achieved remarkable success.
Sartini highlighted the strong performance of their diverse business units, resulting in record-breaking revenue exceeding one billion dollars for the first time annually. Furthermore, their profitability surged by nearly 60% compared to 2019.
Looking ahead to 2022, Sartini emphasized their commitment to streamlining operations and maximizing financial gains. These efforts will be crucial for reducing debt and enhancing returns for shareholders.