Las Vegas Sands reported first-quarter growth in revenue, income, and adjusted earnings based on the ongoing recovery in Macau and new records set in Singapore.
During a first-quarter earnings call Wednesday, Sands reported revenue of $2.96 billion compared to $2.12 billion during the first three months of 2023. Operating income was $717 million compared to $378 million in last year’s Q1. Net income in the first quarter of 2024 was $583 million compared to $145 million. Consolidated adjusted property EBITDA was $1.21 billion compared to $792 million.
LVS CEO Rob Goldstein said the first-quarter results reflect “strong growth” in both Macau and Singapore and that the company remains “deeply enthusiastic” about opportunities to deliver industry-leading growth in the years ahead as they execute substantial capital-investment programs with both. Capex during the first quarter totaled $196 million, including construction, development, and maintenance activities of $99 million at Marina Bay Sands and another $90 million in Macau.
Among Sands’s numbers, the Macau adjusted property EBITDA of $610 million had a low hold of rolling play that negatively impacted EBITDA by $31 million.
In addition, the Cotai Arena closed in January for renovation and won’t reopen until later this year. The second phase of the Londoner room renovation is ongoing and will be completed by year’s end in one tower and in May 2025 in the second tower. A casino renovation will start in May and be completed in December.
Goldstein cited the ongoing recovery in Macau over the last five quarters and their investments enhancing both the business segment and leisure tourism there. It will grow to a $40 billion marketplace in the years ahead.
“As these projects come online between the end of 2024 and the first half of 2025, our competitive position will be stronger than ever,” said President and COO Patrick Dumont. “The scale, quality, and diversity of the product will be better than we’ve ever offered before and unmatched in the market.”
Singapore’s Marina Bay Sands adjusted property EBITDA of $597 million, an all-time record for the market, was based on high hold on rolling play with a $77 million impact. The refurbishment of two hotel towers has been completed and the benefits from that work will be realized, Dumont said.
“We haven’t commenced the next phase of our capital program, the $750 million renovation that includes Tower 3,” Dumont said. “That’s scheduled to be completed by the second quarter of next year. This will support further growth in 2025 and beyond.”
Goldstein also cited investment in Singapore for LVA’s success in the quarter, with a “lot more runway” for growth in the future.
“In Singapore, Marina Bay Sands once again delivered record levels of financial and operating performance,” Goldstein said. “Our new suite product and elevated service offerings position us for additional growth as airlift capacity continues to improve and travel and tourism spending in Asia continues to advance.”
Dumont said Sands has a strong view of the future success in Singapore, a result of investing a couple of billion dollars.
“We think this market is benefitting from a lot of the factors that make Singapore Singapore,” Dumont said. “There’s great infrastructure, strong stable government, great investment, and great policy. To be fair, you’re seeing the results of all that. It’s not only our business, but many businesses in Singapore. That’s a helpful indicator and the more that other investment goes into Singapore will help drive further visitation. We feel strongly the more hotel rooms added will help add to the critical mass of tourism that Singapore already has today. If you look at the wealth creation in Southeast Asia, it’s pretty substantial. The last four years, even during the pandemic, have been pretty meaningful. A lot of customers are new to Singapore and Marina Bay Sands. They’re affluent and want to take advantage of what Singapore has to offer. We don’t see a peak in demand. What we see is a supply constraint. We feel strongly about future investment.”
Goldstein said they’re aware of what’s happening in Macau with promotions by other properties, but Sands remains steadfast that their product, when completed, will be superior. The scale is greater and the market will grow, he added.
“That’s how we’ll capture our fair share and remain focused on margins and EBITDA growth,” Goldstein said. “We’re not going to play the game of chasing $10 more for promotions. We don’t think it’s our business and who we are. We’re an asset-driven company. We’ve proven that time and time again. Once the Londoner and the arena are done, they’ll be the market-leading and margin-leading assets in Macau.”
Dumont said once their properties reach their potential, the margins should reach the upper 30s.
The company repurchased $450 million LVS shares under its share-repurchase program during the quarter. The program will continue to return excess capital to stockholders in the future.
Las Vegas Sands’s effective income-tax rate for the first quarter was 2.8%, compared to 25.6% in the prior-year quarter. it was primarily driven by a 17% statutory rate on its Singapore operations and favorably impacted by the finalization of tax agreements in Macau, the company said.
Unrestricted cash balances as of March 31 were $4.96 billion. As of March 31, total debt outstanding, excluding finance leases and financed purchases, was $13.94 billion.
