A strong showing in Singapore boosted Las Vegas Sands’s fourth-quarter earnings and management remains optimistic that Macau will follow a similar pattern.
During an earnings call Wednesday with Wall Street analysts, LVS Chairman and CEO Rob Goldstein said Macau delivered $654 million in EBITDA for the fourth quarter, noting that it’s been only one year since the end of COVID there. LVS recorded $400 million in EBITDA in the first quarter, $540 million in the second, and $630 million in the third.
“The growth just keeps coming,” Goldstein said. “Growth in gaming and non-gaming revenue will lift the entire market. We have the largest share of EBITDA in the Macau market by a wide margin and we believe the completed Londoner will meet and even exceed the earnings power of the Venetian. Our future in Macau is tethered to these powerful assets, which will drive growth in the years ahead. Where there’s rooms, gaming capacity, retail, entertainment, food and beverage, we have stellar assets. Those assets will even get better as we complete the $1.2 billion Londoner reinvestment program.”
Goldstein discussed the ongoing speculation about the future growth of Macau and whether the market can grow to $30 billion, $35 billion, or even $40 billion and beyond. “We believe it will. This underscores our confidence in the returns generated by capital-investment programs in our portfolio.”
LVS has invested $15 billion in Macau so far, which Goldstein called “the most important land-based market in the world.”
Fourth-quarter EBITDA, assuming expected hold on rolling play, represents “considerable growth” when compared to previous quarters, Goldstein said. Their retail business in Macau has already exceeded pre-COVID numbers. “I continue to expect the gaming portion of business to follow the same path as Singapore and accelerate in 2024.”
As for Marina Bay Sands in Singapore, Goldstein said seven quarters into its reopening, MBS delivered $544 million in EBITDA, the largest quarter in the history of the property.
“The power of this building is evident, based on the results, despite the disruptive impact of our ongoing $1.75 billion renovation,” Goldstein said. “Disruption notwithstanding, MBS is hitting on all cylinders in gaming, lodging, and retail. Slots and ETGs are approaching a $1 billion annual run rate, non-rolling tables are exceeding a $20 million drop per day, and average daily room rates are escalating. The retail component is going far beyond pre-COVID numbers. MBS validates that quality assets prevail and reinvesting in our assets will generate sustained returns.”
When the renovation is completed, MBS will feature 770 suites, up from less than 200. Goldstein said they project $2 billion in EBITDA per year in Singapore.
As for the U.S, Sands continues to pursue a gaming license in New York. It will cost about $6 billion to create a five-star resort. “This is a massive opportunity. Our bid is compelling and if we receive a license, we will be in the ground as quickly as possible.”
In December, the NBA approved the sale of the controlling interest in the Dallas Mavericks to the families that run LVS, including Miriam Adelson, widow of former casino magnate Sheldon Adelson, and Patrick Dumont, Adelson’s son-in-law, who is also president and COO of LVS. Longtime owner of the Mavs, Mark Cuban, who will continue to operate the team, said the desire is to build a Dallas arena that includes a casino-resort.
“In terms of Texas, the most important thing is Las Vegas Sands is actively trying to facilitate the development of an integrated resort there and to legalize gaming,” Dumont said. “It’s an unbelievable market and we hope it happens over time. I can’t tell you when it’s going to be, but we’re very focused on it as a company. We would like the opportunity to develop some unique tourism assets, specifically in Dallas. We think that’s a great market and the opportunity there would be a great one.”
Dumont said the family is happy with its investment in Texas and will look to be part of the business community there.
In a note to investors Wednesday, Andrew Lee, an analyst with Jefferies Equities Research, said the fourth-quarter earnings were in line with estimates. Lee maintained his buy rating.
