LVS Post Improved Results But Building Development Causes Results To Dip

Las Vegas Sands (LVS) Macau operations encountered a 3.1% sequential dip in revenue during the second quarter, amounting to $1.75 billion. However, this figure represents 7.73% year-over-year increase compared to the same period in 2023.

Sands China, the group’s Macau subsidiary, generated a net income of approximately $246 million, marking a 31.5% yearly surge. Nonetheless, the figure exhibited a 17.7% quarterly decline, highlighting the challenges posed by the ongoing renovations and refurbishments.

While the recovery in the premium mass segment has been robust, the base mass segment, particularly unrated play, continues to lag behind pre-pandemic levels. Chinese visitation to the Macau Special Administrative Region (SAR) also remains below its peak.

A significant disruptor for LVS’s Macau operations has been the extensive renovations underway at The Londoner and the Venetian Cotai Arena. The group anticipates that the “disruption impact will peak in 3Q24, with new Londoner Grand casino and suite capacity and The Venetian Cotai Arena expected to be back online by December 2024.”

Despite these challenges, the company’s adjusted property EBITDA rose by 3.7% year-over-year, reaching $561 million. However, the hold in rolling play resulted in an 8% quarterly decrease.

Among LVS’s Macau properties, the Venetian remained the revenue leader, generating $686 million, a 5.1% yearly increase. Casino revenues at the Venetian soared by 33% year-over-year, reaching $556 million.

The Londoner followed closely, contributing $444 million in revenue, up 10.4% yearly, fuelled by casino revenues of $318 million, a 37% annual surge.

The Parisian brought in $265 million in revenue, a 10.9% yearly rise, with casino revenues climbing 24% to $207 million.

The Four Seasons saw its revenue increase by 12.1% year-over-year to $250 million, bolstered by casino revenues of $178 million, a 28% yearly uptick.

Conversely, Sands Macau experienced a 6% yearly drop in revenue, totalling $79 million, with casino revenue declining by 6% year-over-year to $70 million.

Shifting focus to Singapore, LVS’s Marina Bay Sands property generated $1.01 billion in revenue, marking a 9.8% yearly increase. However, this figure represented a 12.26% sequential decline compared to the first quarter of 2024.

The property’s adjusted EBITDA fell by 14.2% quarterly but rose by an impressive 18.5% year-over-year, totalling $512 million.

Similar to its Macau counterparts, Marina Bay Sands was impacted by ongoing renovations and refurbishments, which are expected to be completed by the second quarter of 2025.

Casino revenue at Marina Bay Sands during the second quarter totalled approximately $706 million, a 57% yearly increase. Room revenue also saw a 20% year-over-year surge, reaching $124 million.

On a consolidated level, Las Vegas Sands reported second-quarter revenues of $2.76 billion, an 8.6% yearly rise. However, this figure represented a 6.69% sequential decline compared to the previous quarter.

The company’s adjusted property EBITDA topped out at $1.07 billion, up 10.27% year-over-year but down 11.1% sequentially.

Net income totalled $424 million, a 15.2% yearly increase but a 27.27% quarterly decrease compared to the first quarter of 2024.

Commenting on the results, Robert G. Goldstein, Chairman and CEO of Las Vegas Sands, noted, “Our financial and operating results for the second quarter of 2024 reflect growth in both Macau and Singapore compared to the second quarter of 2023.”

Goldstein further emphasized the company’s financial strength and industry-leading cash flow, stating, “Our financial strength and industry-leading cash flow continue to support our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and our program to return excess capital to stockholders.”