Las Vegas Sands Corp. expressed disappointment yesterday with its Macau portfolio’s fourth-quarter EBITDA of USD608 million, citing a 390-basis-point sequential drop in margins to 28.9% after adjustments.
Factors such as higher operating expenses, increased promotional investments, a customer mix shift toward lower-margin rolling and premium mass segments, and a 140-basis-point drop in non-rolling hold percentage versus the prior quarter were highlighted by senior executives of Las Vegas Sands (LVS) and Sands China Ltd. during the fourth-quarter earnings call.
LVS chairman, CEO, and treasurer Robert Goldstein stated: “Macau delivered $608 million of EBITDA for the quarter, and we are disappointed with that EBITDA number. However, mass market revenue did exceed 25% of the total share this quarter, up 23.6% in the first quarter of 2025.”
Patrick Dumont, LVS president, chief operating officer, and director, added: “If we had held as expected in our rolling program, our EBITDA would have been lower by $26 million. When adjusted for higher-than-expected hold of the rolling segment, our EBITDA margin for the Macau portfolio of properties would have been 28.9%, down 390 basis points compared to the fourth quarter of 2024.”
LVS operates five properties in Macau through its subsidiary, Sands China Ltd. According to the company’s 2024 ESG report, those assets include 27,248 team members, 10,829 hotel rooms and suites, 154 restaurants, 1.6 million square feet of MICE space, 25,351 entertainment seats, and 2.1 million square feet of retail malls.
For the year ended December 2025, Sands China reported revenue rose 5.1% year-on-year to $7.44 billion, while net profit fell 14.2% to $901 million. Adjusted property EBITDA fell 0.9% to $2.31 billion.
Per Sands China’s filing to the Hong Kong Exchanges and Clearing Ltd., the company’s weighted average debt balance stood at $15.90 billion in the quarter. Meanwhile, its weighted average borrowing cost fell to 4.6% from 5.0% in the fourth quarter of 2024.
Grant Chum, president, CEO, and executive director of Sands China Ltd., detailed the margin pressures to analysts during the earnings call.
“In terms of the sequential decline in operating margin, firstly, we have higher reinvestment. But on a sequential basis, that’s mostly driven by the segment mix change. So we have more rolling business as a proportion of our total gaming. And within non-rolling, it’s dominated by the super high end on the premium mass,” Chum said.
“Secondly, OpEx was higher, yes. We invested more in event costs and we had higher payroll, primarily as a result of increasing our operating table hour capacity. And lastly, against the prior quarter, but also against the prior year, the non-rolling hold percentage was lower by about 140 basis points,” he continued.
Chum attributed some of those costs to major events, including the NBA China Games Week at the Venetian Arena last October. “NBA was the biggest event that we conducted both across the quarter and actually ever in the history of the company. And it was, as you say, tremendously successful,” he remarked.
The NBA and Las Vegas Sands have a five-year agreement to host preseason games annually at the Venetian Arena.
Despite pressures being faced in Macau’s market, the LVS executives remained optimistic about strategy on the call. Patrick Dumont, LVS president and COO, told analysts: “We are focused on delivering revenue and cash flow growth across the portfolio. We will use our scale and product advantages, together with targeted incentives, to better address every market segment.”
Responding to an analyst’s question on early signs of Chinese New Year demand in Macau, Dumont sidestepped current-quarter details but struck an upbeat note. “I do want to point out that we’re going to stay consistent. We’re not really going to talk about the current quarter. But I will tell you that if you look at the growth in the Macau market overall, it’s been very encouraging,” he said during the earnings call.
Shareholder returns and future focus
LVS repurchased $500 million of its own stock in the quarter, boosting capital returns. It also bought $66 million in Sands China Ltd. shares, raising ownership to 74.8% as of Dec. 31, 2025. Dumont stated on the call, “We continue to see value in both names.”
The company targets $700 million quarterly EBITDA in Macau.
Regarding new developments, LVS showed no rush during the call. When asked about Japan, Dumont said, “We’re very focused on the assets that we have. And if something comes up, we’re definitely interested.”
Wrapping up the earnings call, Patrick Dumont, Las Vegas Sands president and COO, reminded analysts that longtime LVS executive Rob Goldstein will transition from LVS chairman, CEO, and treasurer to a senior advisor role.
Dumont, who will succeed Goldstein, praised Goldstein’s contributions during the call, speaking on behalf of the board, senior leadership, and all team members. He highlighted Goldstein’s leadership in key LVS roles, his advocacy for the gaming industry, and his mentorship of numerous executives now in prominent positions.
“There are not many individuals who have even more in this industry than he has,” Dumont said. “Rob has hired, led, and mentored numerous people over the years. Many of these people serve in leadership roles in the industry or elsewhere because Rob Goldstein took the time to invest in them and their careers.”
Dumont also thanked Goldstein for his loyalty to the Adelson family. “Rob and Sheldon had a wonderful friendship and achieved so much together,” he noted. “On behalf of Dr. Adelson and the family, thank you, Rob, for everything you’ve given to this company.”
In closing, Dumont said, “We look forward to working with you in your new role.”
Goldstein is set to transition to the senior advisor role on March 1.
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