Las Vegas Sands first-quarter earnings per share beat estimates and top ratio
Las Vegas Sands (NYSE: LVS) reported first-quarter results today after the U.S. market closed, beating analysts' earnings per share (EPS) forecasts while also beating Wall Street's revenue expected.
The Venetian Macau operator said it earned 75 cents a share on a non-GAAP (non-GAAP) basis in the third quarter on revenue of $2.96 billion. Analysts expected earnings of 62 cents per share on revenue of $2.94 billion. The company's Sands China subsidiary, which operates five casino resorts in Macau, contributed to this solid figure.
Macau continued its sustained recovery this quarter. Rob Goldstein, CEO of the Macau Tourism Board, said: “Our decades-long commitment to investing in enhancing Macau’s attractiveness for business and leisure travel and supporting its development into a world center for business and leisure travel is the result of enabling us to continue to drive the recovery in travel and tourism spending," Sands said in a statement.
Sands' move to the Special Administrative Region (SAR) appears to be paying off. Sands China's growing market share in Macau is driven in part by its ability to attract more business from mass and premium mass customers and by offering a wide range of non-gaming amenities at its venues.
For Las Vegas Sands and Macau, although stable, it is not perfect
Sands noted that its first-quarter adjusted real estate earnings before interest, taxes, depreciation, and amortization (EBITDA) were $610 million, but a low willingness to run games negatively impacted that number by as much as $31 million.
Still, net sales at Sands' China operations rose 42% to $1.8 billion in the first three months of 2024 from the same period last year. The London Macau on Cotai Strip, which has not yet fully ramped up, reported net revenue of $562 million, up from $283 million in the same period in 2023, making the venue the second highest-grossing Sands Macao venue behind the Venetian properties.
Sands generated $610 million in adjusted real estate EBITDA in China's only territory where gambling is allowed, with the Venetian and Londoner taking in a combined $486 million.
The Londoner is part of Sands’ plans to add approximately 2 million square feet of luxury all-suite accommodation on the Cotai Strip. Londoners agree with operators' plans to bring more non-gaming attractions to Macau. The all-suite hotel features 600 suites, some of which are inspired by British football icon David Beckham.
Marina Bay Sands is as strong as ever
Singapore's Marina Bay Sands, currently the operator's only integrated resort outside Macau, had another strong quarter. The property's adjusted real estate EBITDA was $597 million in the first three months of the year, with $77 million in growth driven by high retention rates in the ongoing game.
“In Singapore, Marina Bay Sands once again achieved record levels of financial and operating performance. As Asia’s air transport capacity continues to improve and travel and tourism spending continues to increase, our new Suite offerings and an expanded range of services position us for further growth. "
Sands plans to begin construction on a $3.3 billion Singapore hotel and casino expansion in July 2025. The gaming company also announced it repurchased $450 million worth of its own stock in the first quarter.
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Source: www.casino.org
