Macau’s mass-gaming revenue reached $1 billion for the first time since 2019, according to the first-quarter earnings report released Wednesday by the Las Vegas Sands Corp.
Macau adjusted earnings reached $398 million during the first quarter as part of a strong recovery in travel and tourism spending that’s underway there and in Singapore.
“While travel restrictions and reduced visitation continued to impact our financial performance during the quarter, a robust recovery in travel and tourism spending across our markets is now underway,” said CEO and Chairman Rob Goldstein. “In Macau, we were pleased to see the ongoing recovery now underway in all gaming and non-gaming segments accelerate during the quarter. We remain enthusiastic about the opportunity to continue our investments to enhance Macau’s tourism appeal to travelers from throughout the region, including foreign visitors to Macau.”
LVS reported revenue of $2.12 billion from January to March, compared to $943 million in the prior-year quarter. Operating income was $378 million, compared to an operating loss of $302 million in the prior-year quarter. Net income from continuing operations in the first quarter of 2023 was $145 million, up from a net loss from continuing operations of $478 million in the first quarter of 2022.
Consolidated adjusted property EBITDA was $792 million, compared to $110 million in the prior-year quarter.
On a GAAP basis, total net revenues for Sands China Limited (SCL) increased to $1.27 billion compared to $547 million in the first quarter of 2022. Net loss for SCL was $10 million, compared to $336 million in the first quarter of 2022.
Interest expense, net of amounts capitalized, was $218 million for the first quarter of 2023, compared to $156 million in Q1 2022. The weighted average-borrowing cost in the first quarter of 2023 was 5.4% compared to 4.2% during the first quarter of 2022, while weighted average-debt balance increased compared to the prior-year quarter due to the borrowing of $999 million under the SCL credit facility in the last year.
Income-tax expense for the first quarter of 2023 was $50 million, compared to $2 million in 2022. That expense for was primarily due to the increased profitability of the Singapore operations and Singapore’s 17% statutory rate.
Unrestricted cash balances as of March 31 were $6.53 billion. As of March 31, total debt outstanding, excluding finance leases and financed purchases, was $15.97 billion.
Capital expenditures during the first quarter totaled $166 million, including construction, development, and maintenance activities of $115 million at Marina Bay Sands, $38 million in Macau, and $13 million in corporate and other.
