Las Vegas Sands is making a strong recovery from the impacts of the Covid-19 pandemic, with its third-quarter adjusted property EBITDA reaching $1.12 billion, just 6% below the same period in 2019. The casino company reported earnings of 55 cents per share on revenue of $2.8 billion, in line with expectations. Notably, Las Vegas Sands’ recovery is largely attributed to the strong performance of its properties in Asia. In Singapore, Marina Bay Sands has seen numbers surpassing pre-pandemic levels in gaming, retail shopping, and other spending, with profit margins exceeding 48%. Despite lower visitation levels in Macao, the company reported a 96% increase in occupancy compared to pre-Covid lockdowns, and customers are spending more per person. Mass gaming revenue in Macao reached 92% of 2019 third-quarter levels, totaling $5.1 billion. Las Vegas Sands CEO Rob Goldstein expressed optimism about Macao’s potential, predicting the destination could achieve $40 billion in annual revenue in the near term.
As cashflow improves, Las Vegas Sands is prioritizing new capital expenditures. The company plans to continue the remodel of Marina Bay Sands, resulting in nearly four times the number of suites, and commence the second phase of construction on The Londoner in Macao. Additionally, Las Vegas Sands announced a $2 billion share repurchase plan through 2025.
The company’s president, Patrick Dumont, highlighted the transformation of Las Vegas Sands into an investment-grade company over the past five years, providing access to a robust debt market. Dumont emphasized that the investment-grade balance sheet enhances the company’s standing in new jurisdictions, such as its proposal for a $5 billion casino resort in Nassau County, New York. The proposal faces competition from other gaming companies, including MGM, Resorts World, Caesars, Wynn, and Bally’s, each seeking opportunities in various locations in New York.
The positive performance of Las Vegas Sands in the third quarter signals a robust rebound for the casino giant, driven by its strategic focus on the Asian market and ongoing capital investments.
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