Las Vegas Sands Corp. Wednesday reported reduced net revenue and higher operating losses in the second quarter compared to 2021, as the company deals with a slowdown in Macau due to COVID.
Net revenue was $1.05 billion, compared to $1.17 billion in the prior-year quarter. Operating loss was $147 million, compared to $139 million in the prior-year quarter, LVS reported.
Net loss from continuing operations in the second quarter of 2022 was $414 million, compared to $280 million in the second quarter of 2021.
Consolidated adjusted property EBITDA was $209 million, compared to $244 million in the prior-year quarter.
“While pandemic-related restrictions continued to impact our financial results this quarter, we were pleased to see the recovery in Singapore accelerate during the quarter, with Marina Bay Sands delivering $319 million in adjusted property EBITDA,” said Robert Goldstein, LVS’ chairman and CEO. “We remain enthusiastic about the opportunity to welcome more guests back to our properties, as greater volumes of visitors are eventually able to travel to both Singapore and Macau. We also remain steadfast in our commitment to supporting our team members and to helping those in need in each of our local communities as they recover from the impact of the pandemic.”
Goldstein said they remain confident in the recovery of travel and tourism spending across LVS’ markets.
Demand for offerings from customers who have been able to visit remains robust, while pandemic-related travel restrictions continue to limit visitation and hinder the current financial performance, he said.
Capital expenditures during the second quarter totaled $198 million, including construction, development, and maintenance activities of $97 million at Marina Bay Sands, $67 million in Macau, and $34 million in corporate and other expenses.
“Our industry-leading investments in our team members, communities, and integrated-resort portfolio position us exceedingly well to deliver future growth as travel restrictions subside and the recovery comes to fruition,” Goldstein said. “We are fortunate that our financial strength supports our investment and capital-expenditure programs in both Macau and Singapore, as well as our pursuit of growth opportunities in new markets.”
LVS reported its income-tax expense for the second quarter of 2022 was $110 million, compared to an income-tax benefit of $6 million in the prior-year quarter. The income-tax expense for the second quarter of 2022 was driven primarily by a 17% statutory rate on the increased profits of LVS’ Singapore operations.
Unrestricted cash balances as of June 30 were $6.45 billion. LVS has access to $2.96 billion, available for borrowing under U.S., SCL, and Singapore revolving credit facilities, net of outstanding letters of credit, the company said.
As of June 30, total debt outstanding, excluding finance leases and financed purchases, was $15.35 billion.