Las Vegas may still be part of the name Las Vegas Sands, but the casino operator left no doubt its focus is halfway around the world.
Six weeks after announcing it was selling its Las Vegas properties for $6.25 billion, the company said its quarterly results from the Venetian, Palazzo, and Sands Expo were now classified as “a discontinued operation held for sale.”
The emphasis of the 45-minute conference call Wednesday with analysts and investors was on its operations in Macau and Singapore. Las Vegas Sands CEO Rob Goldstein said the company is looking at reinvesting much of the proceeds from its Las Vegas operations sale into Asian opportunities.
“We remain confident in the eventual recovery in travel and tourism spending across our markets,” Goldstein said of the continued challenges in Macau and Singapore from the COVID-19 pandemic that disrupted visitation to both markets.
“Demand for our offerings from our customers who have been able to visit remains robust, but pandemic-related travel restrictions, particularly in Macau and Singapore, continue to limit visitation and hinder our current financial performance,” Goldstein said.
According to the company’s statement, Sands said its Las Vegas properties lost $62 million in the quarter that ended March 31. The company’s net revenues from its Las Vegas holdings were $139 million, compared to $365 million a year ago, a decline of 62%.
Goldstein did have one comment about the Las Vegas market. He noted visitation on weekends is reaching pre-pandemic levels, although the midweek market remains slow due to the lack of conventions and meetings.
Overall, Las Vegas Sands said its Macau operations collected $769 million in revenues during the quarter, a decline of 4.1% from a year ago. Revenues from Marina Bay Sands in Singapore fell 30.4% to $426 million.
Total quarterly revenues of $1.2 billion, was a decline of 15.6% from 2020’s first quarter. Las Vegas Sands said its total loss was $96 million, compared to net income of $6 million a year ago.
The company expects to close the sale of its Las Vegas properties by the end of the year. Real estate investment trust VICI Properties is paying $4 billion for the company’s 63-acres and facilities on the Strip.
The properties will be leased to Apollo Global Management, which is paying $2.25 billion for the operations. However, $1.2 billion of the sale is coming through seller financing from Las Vegas Sands.
Goldstein said Wednesday the company is looking for other opportunities in the U.S. but didn’t go into details. Las Vegas Sands hired a team of lobbyists in Texas to sway lawmakers into supporting casino expansion legislation in the state. The company is also investing in a multi-million advertising campaign in support of the effort.
Las Vegas Sands has also been engaged in lobbying lawmakers in New York, where efforts have slowed in the potential to award an integrated resort license for Manhattan ahead of the voter-mandated 2023 start date.
Goldstein didn’t mention either U.S. market during the conference call and said the company is taking a slow pace in looking at the possibility of investing in digital gaming opportunities, including online gaming and online sports betting.
“We aren’t there yet,” Goldstein said, adding that it might take up to a year for the company to consider its options.
Shares of Las Vegas Sands closed at $60.76 Wednesday on the New York Stock Exchange, up $1.72 or 2.91%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
