Record profit for Singapore operator Marina Bay Sands

This has fuelled speculation MBS may have captured some of the market from rival Resorts World Sentosa (RWS). The MBS bottom line was also more than four times the figure in the same period last year, after it launched parts of the resort in April 2010 - though it was not fully up and running for that quarter.

"Analysts have been caught by surprise by the stunning level of growth in the gaming market since MBS and RWS opened last year." The market has expanded from zero in February last year, before first-mover RWS opened its casino, to be worth about us$ 6 billion a year now, estimated Morgan Stanley analysts.

"In fact, the Royal Bank of Scotland said in April that Singapore's total gaming revenue will rise to us$ 6.4 billion this year, helping it to leapfrog Las Vegas which could take in us$ 6.2 billion.

This would make the Republic the world's second biggest gaming centre, behind Macau.
Now, all eyes will be on RWS, whose holding company Genting Singapore will report financial results in the coming weeks. After its recent strong showing, analysts say that MBS could have captured some of Genting's market share.

Genting recently suffered a sharp drop in share price - hitting as low as us$ 1,456 last week - though on Wednesday the counter rebounded by 11 cents or 6.1 % to us$ 1,59 after the MBS results were released.

In the second quarter, MBS posted us$ 594.6 million of gaming revenues, well above the us$ 464.4 million the quarter before, as VIP tables, mass-market tables and slot machines all attracted more business. For instance, VIPs gambled a staggering us$ 12.2 billion at MBS tables, up from us$ 10.1 billion from the first quarter. Mass market gamblers wagered us$ 1.1 billion at its tables, from us$ 986 million the previous quarter. Non-gaming facets of the integrated resort also chipped in.

Hotel occupancy for the second quarter was 90.8 %, more than four percentage points higher than the quarter before. The second quarter had the June holidays in Singapore, while summer vacations for many other countries also started that month. The higher occupancy boosted room revenue to us$ 61.6 million, up 10 % over the previous quarter, while revenue from food and beverage and retail were also up.

“MBS really had everything going for them," said Phillip Securities analyst Magdalene Choong. "There is a possibility that it may have captured market share from RWS."

Citigroup said: "We suspect the property has been successful in capturing increased mass market share, but has also won back some VIP share as well. “With MBS seemingly winning back share, we suspect Genting Singapore may face some headwinds." Citi added the strengthening Singapore dollar also made MBS' results, which are reported in US dollars, look better.

A report from UOB Kay Hian highlighted the key role that gamers from China, including Hong Kong, are playing in the fortunes of both MBS and RWS. It said that Chinese clients make up at least 30 % of both casino operators' VIP customers, which in turn contribute to the bulk of their gaming revenues.

MBS is the most profitable property in the stable of its parent company, New York-listed Las Vegas Sands, which also recorded improved business at its Macau casinos. All in all, Las Vegas Sands reported us$ 367.6 million in net profit for the second quarter, compared with a net loss of us$ 4.7 million from a year ago.