Las Vegas Sands Tops Q1 EPS Estimate, Beats on Top Line

Posted on: April 17, 2024, 04:02h. 

Last updated on: April 18, 2024, 10:14h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Las Vegas Sands (NYSE: LVS) delivered first-quarter results after the close of US markets on Wednesday, surpassing analysts’ earnings per share (EPS) forecast while beating Wall Street’s revenue estimate.

Macau debt
Sands China’s Venetian Macau. The US-based parent company reported estimate-beating first-quarter results. (Image: Wall Street Journal)

The Venetian Macau operator said it earned 75 cents per share in the March quarter on the basis of non-generally accepted accounting principles (non-GAAP) on sales of $2.96 billion. Analysts expected EPS of 62 cents on revenue of $2.94 billion. Macau, where the company’s Sands China unit runs five casino resorts, contributed to the solid numbers.

In Macao, the ongoing recovery continued during the quarter. Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world center of business and leisure tourism positions us well as the recovery in travel and tourism spending progresses,” said Sands CEO Rob Goldstein in a statement.

Sands’ pivot in the Special Administrative Region (SAR) appears to be paying dividends. Sands China gained market share in Macau due in part to its ability to capture more business from mass and premium-mass clients, as well as extensive menus of nongaming amenities at its venues.

For Las Vegas Sands, Macau Solid, but Not Perfect

Sands noted its first-quarter adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) was $610 million, but low hold on rolling play adversely affected that figure to the tune of $31 million.

Still, net revenue for the Sands China business surged 42% to $1.80 billion in the first three months of 2024 from the year-earlier period. The Londoner Macau on the Cotai Strip, which hasn’t fully ramped up, said net revenue soared to $562 million from $283 million in the same period in 2023, making the venue the second-highest-grossing among Sands’ Macau properties behind only the Venetian.

The Venetian and the Londoner combined for $486 million of the $610 million in adjusted property EBITDA Sands generated in the lone Chinese territory where betting is permitted.

Londoner is part of Sands’ effort to add approximately two million square feet of luxurious suite accommodations on the Cotai Strip. Londoner jibes with the operator’s plans to bring more nongaming attractions to Macau. The all-suite hotel has 600 guest suites, including some inspired by English soccer icon David Beckham.

Marina Bay Sands Strong as Usual

Marina Bay Sands in Singapore — currently the operator’s lone integrated resort outside of Macau — posted another solid quarter. In the first three months of the year, that property generated adjusted property EBITDA of $597 million, helped by a $77 million boost attributable to high hold on rolling play.

In Singapore, Marina Bay Sands once again delivered record levels of financial and operating performance. 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,” added Goldstein.

Sands is planning to start a $3.3 billion expansion of the Singapore casino hotel in July 2025. The gaming company also noted it repurchased $450 million shares of its stock during the first quarter.