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  • Q3 2023: Las Vegas Sands revenue soars 178% as Asian markets rebound
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Las Vegas Sands has reported a substantial 178% year-on-year rise in Q3 2023 net revenue to $2.8bn, up from $1.01bn in the same period of last year.

Operating income surged 289% to $688m, in stark contrast to the operating loss of $177m experienced in Q3 2022.

Moreover, net income from continuing operations in Q3 came in at $449m, a major 218% recovery from a net loss of $380m as reported in the same quarter of 2022.

Bounce back

The turnaround was attributed to the continuing recovery of travel and tourism spend in both Macao and Singapore following the Covid-19 pandemic. Both regions are key markets for Las Vegas Sands and its integrated resort properties.

Consolidated adjusted property EBITDA amounted to $1.12bn, an upswing from the $191m recorded in Q3 2022.

Sands China also saw its fortunes turn, where total net revenues catapulted to $1.78bn, compared to a mere $251m in Q3 2022. The net income for Sands China was $231m, rebounding from a net loss of $472m in the corresponding period of the previous year.

Macao and Singapore

Las Vegas Sands chairman and CEO Robert Goldstein said he was pleased to see the recovery in Macao and Singapore and was “deeply enthusiastic” about the growth prospects in both markets.

“We remain enthusiastic about the opportunity to continue our investments to enhance Macao’s tourism appeal to travellers from throughout the region, including to foreign visitors to Macao,” said Goldstein.

“Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world centre of business and leisure tourism positions us exceedingly well to deliver strong growth as the recovery in travel and tourism spending proceeds.”

Meanwhile, on Singapore, he added: “In Singapore, Marina Bay Sands again delivered outstanding levels of financial and operating performance.

“Our new suite product and elevated service offerings position us to deliver future growth as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues.”

The company’s balance sheet as of 30 September 2023 shows unrestricted cash balances of $5.57bn and total debt outstanding of $14.17bn.

Goldstein said the financial strength of the company would support ongoing investment in both regions while exploring growth opportunities in new markets.

Stocks and shares

The operator also announced a board authorisation for a $2bn share repurchase under its stock repurchase programme, running through 2025.

This decision aligns with the company’s intent to return excess capital to its stockholders.

Regarding stockholder returns, the company maintained a quarterly dividend of $0.20 per common share. The next dividend of the same value is scheduled for payment on 15 November.

Other noteworthy factors affecting the Q3 2023 earnings include an interest expense of $200m in Q3 2023, while the effective income tax rate for the quarter was 21.4%, compared to the 18.8% in the prior-year period.

Q3 2023 capital expenditures totalled $330m, encompassing various activities such as construction, development, and maintenance across different sectors, including Marina Bay Sands and Macao.

The report showcased a strong rebound for Las Vegas Sands, reflecting a revival in the travel and tourism sectors of key markets.

More to come

COO Patrick Dumont was not content, however. He said on the operator’s Q3 earnings call: “The recovery story is not fully there in terms of air travel and in terms of accessibility. I think it’s on the way, but it’s not fully back.”

The stock price rose 5.4% in pre-market trading on the results, which came in ahead of analyst expectations.

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