Las Vegas Sands reports mixed Q3 results

Las Vegas Sands Corp. (LVS) released its third-quarter financial results for 2024 yesterday, revealing a complex picture of revenue performance amid a recovering gaming market in Macau. The company reported a total revenue of USD2.68 billion (MOP 21.4 billion), a decline of 4% year-on-year, falling short of analysts’ expectations by nearly 4%. These results underscore the challenges LVS faces as it navigates post-pandemic recovery while making significant investments in its properties.

The company’s net income for the quarter was USD353 million (MOP2.82 billion), down 21.4% from the previous year. Earnings per share (EPS) also fell to USD0.44, compared to USD0.55 in Q3 2023. Consolidated adjusted property EBITDA was reported at USD991 million (MOP7.92 billion), reflecting an 11.5% decline from the prior year.

Mixed results in Macau operations

LVS’s Macau operations generated net revenues of USD1.77 billion (MOP14.2 billion), a slight decrease of 1% from the same period last year. This figure highlights the ongoing recovery in the region, which has seen a 13% increase in overall market revenue compared to Q3 2023. The Parisian Macao reported net revenues of USD250 million (MOP2 billion), a year-over-year increase of 2.5% but slightly below expectations. Conversely, The Londoner Macao experienced a more substantial decline of 11.2%, with revenues hitting USD460 million (MOP3.68 billion).

LVS’s ferry operations and other segments surpassed expectations, generating USD31 million against an average estimate of USD21 million (MOP167 million).

Robert G. Goldstein, chairman and CEO of LVS, emphasized the company’s commitment to strategic investments despite current challenges. He noted that ongoing renovations at The Londoner have temporarily disrupted operations but are expected to enhance LVS’s competitive position once completed.

“The Macau market continues to grow. Total gain in revenue for the market grew 13% in the third quarter of 2024 when compared to the third quarter of 2023,” Goldstein said.

He acknowledged that “although our reported financial results reflected lower-than-expected hold on rolling play in Singapore and disruptions from our ongoing development work at The Londoner in Macau, we continued to execute our strategic objectives during the quarter.”

Looking ahead, LVS remains optimistic about growth prospects in Macau and Singapore. The company has committed to significant capital investments to enhance its properties and attract high-value tourists. Alongside operational improvements, LVS repurchased USD450 million (MOP3.6 billion) worth of its stock during the quarter and raised its annual dividend to USD1 per share for 2025, signaling confidence in future cash flows.

Despite these positive indicators, LVS faces ongoing challenges. The company reported that low hold on rolling play negatively impacted adjusted property EBITDA by approximately USD2 million (MOP16 million) during the quarter. Additionally, renovation disruptions have temporarily reduced room availability and affected overall margins across its properties.

Patrick Dumont, president and chief operating officer of LVS, said, “Macau EBITDA was USD585 million (MOP4.7 billion). If we had held as expected in our rolling program, our EBITDA would have been higher by USD2 million (MOP16 million). When adjusted for lower-than-expected hold in the rolling segment, our EBITDA margin from Macau portfolio properties, excluding The Londoner, would have been 35.1%, down 110 basis points compared to Q3 2023.”

While Las Vegas Sands’ third-quarter results reflect some setbacks amid ongoing recovery efforts in Macau and Singapore, the company’s commitment to strategic growth initiatives positions it favorably for future opportunities as tourism rebounds. Nadia Shaw