Las Vegas Sands has detailed “ongoing improvement” in its Macao and Singapore operations within its fourth quarter and full year 2023 financial report.
Chair and CEO Robert Goldstein noted that the operator remains “deeply enthusiastic” about growth opportunities in both regions, as total net revenue rose to almost $3bn during the period.
LVS improving in Macao & Singapore
Publishing its results, LVS declared a Q4 net revenue of $2.92bn, up 161 per cent on the same period the previous year (Q4 2022: $1.1bn), with casino revenue coming in at $2.1bn, a 222.8 per cent increase year-over-year (Q4 2022: $654m).
Operating income during the quarter stood at $710m, up from an operating loss of $166m in Q4 2022. Net income from continuing operations was $469m, an improvement compared to a net loss from continuing operations of $269m in Q4 2022. Consolidated adjusted property EBITDA was $1.2bn (Q4 2022: $222m).
For the full year, LVS’ net revenue stood at $10.4bn, a 152.4 per cent improvement YoY (2022: $4.1bn), with casino revenue growing by 186.3 per cent to $7.52bn (2022: $2.63bn).
Operating income in 2023 was $2.31bn, (2022: $792m operating loss), net income from continuing operations was $1.43bn, $1.62 per diluted share, in comparison to 2022’s net loss of $1.54bn, $1.40 per diluted share. Adjusted property EBITDA came in at $4.09bn (2022: $732m).
Goldstein commented: “We were extremely pleased with our financial and operating results for the quarter, which reflect the ongoing improvement in the operating environment in both Macao and Singapore.
“We remain deeply enthusiastic about our opportunities for growth in both Macao and Singapore in the years ahead.”
Property revenue
Per property, locations across LVS’ portfolio in Macao – The Venetian Macao, The Plaza Macao, The Londoner Macao, The Parisian Macao, and Sands Macao – and Singapore’s Marina Bay Sands saw their revenue improve in Q4.
Through majority ownership in Sands China, Macao operations generated $1.86bn in revenue during the quarter, up 319.6 per cent YoY (Q4 2022: $444m).
Per location, The Venetian led the way with $748m (2022: $201m), followed by The Londoner with $589m (2022: $93m), The Parisian with $222m (2022: $51m), The Plaza with $192m (2022: $75m) and Sands Macao with $81m (2022: $17m).
Macao adjusted property EBITDA came in at $654m, up on a $51m loss the previous year. However, LVS noted that a low hold on rolling play negatively affected the value by $40m.
For the full year, Macao operations produced $6.56bn in revenue, a 303.1 per cent increase YoY (2022: $1.63bn). Adjusted property EBITDA stood at $2.2bn (2022: $324m loss).
“In Macao, the ongoing recovery across all segments continued during the quarter,” stated Goldstein.
“Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world centre of business and leisure tourism positions us well as the ongoing recovery in travel and tourism spend progresses.”
In Singapore, Marina Bay Sands revenue improved by 55.6 per cent to $1.06bn (Q4 2022: $682m). Adjusted property EBITDA came in at $544m, up on the previous year’s $273m as a high hold on rolling play positively impacted the value by $71m.
For the full year, revenue rose by 52.98 per cent to $3.85bn (2022: $2.52bn), while adjusted property EBITDA stood at $1.86bn (2022: $1.06bn).
“In Singapore, Marina Bay Sands once again delivered outstanding levels of financial and operating performance,” added Goldstein.
“Our new suite product and elevated service offerings position us well as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues to advance.”
Looking ahead
During its earnings call accompanying its Q4 results, LVS made comments about its property progress in the US states of New York and Texas.
In New York, Goldstein stated that the company has received “strong local support” for the licence, which would see LVS develop the Nassau Coliseum in Long Island into a casino and entertainment venue.
The CEO remarked that the cost of the building will be “in the $6bn range”, adding that they have plans to “be in the ground as quickly as possible” if their bid is successful and they are hopeful of finding out as such later this year.
Commenting on Texas, President and Chief Operating Officer Patrick Dumont claimed that LVS is “actively trying to facilitate the development of integrated resorts” in the state “through the liberalisation of gaming”.
The company believes Texas is an “unbelievable market”, adding that although they’re unsure when it will be, there is an “opportunity to develop some very unique tourism assets, specifically in Dallas”.
Goldstein noted: “We are fortunate that our financial strength supports our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and the return of capital to stockholders.
“We repurchased $505m LVS shares under our share repurchase program during the quarter. We look forward to utilising our share repurchase program to return excess capital to stockholders in the future.
“In addition, we entered into an agreement during the quarter to purchase approximately $250m of Sands China stock, which, upon settlement of the agreement, is expected to increase our ownership interest in Sands China.”
