• Macao EBITDA: $535 million for the quarter.
• Singapore Adjusted Property EBITDA: $605 million, a record quarter.
• Mass Gaming Revenue in Singapore: $778 million, 73% growth from Q1 2019 and 13% growth from the previous quarter.
• Macao EBITDA Margin: 31.6%, down 280 basis points from Q1 2024.
• Venetian Margin: 35.3%.
• Plaza and Four Seasons Margin: 35.6%.
• Singapore EBITDA Margin: 52%.
• Share Repurchase: $450 million of LVS stock repurchased during the quarter.
• Quarterly Dividend: $0.25 per share.
• Share Repurchase Authorization: Increased to $2 billion.

• Warning! GuruFocus has detected 2 Warning Sign with SNT.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Las Vegas Sands Corp (NYSE:LVS) reported a record quarter in Singapore with $605 million of adjusted property EBITDA, marking an extraordinary achievement.
• The company completed the refurbishment of the Londoner Grand, adding 2,405 rooms and suites, which is expected to drive revenue and cash flow growth.
• LVS repurchased $450 million of its stock during the quarter and paid a recurring quarterly dividend of $0.25 per share, indicating strong shareholder returns.
• The company has increased its share repurchase authorization to $2 billion, reflecting confidence in its financial position and future prospects.
• LVS's investment in non-gaming amenities and high-value tourism in Singapore has shown significant positive impacts, with mass gaming revenue reflecting substantial growth.

Negative Points

• Macao's EBITDA margin for the portfolio of properties decreased by 280 basis points compared to the first quarter of 2024.
• The company faced challenges in the Macao market with a decline in non-rolling revenues, particularly in the premium mass segment.
• LVS decided not to bid for a casino license in New York due to concerns about the impact of potential legalization of iGaming on market opportunity and project returns.
• The competitive environment in Macao has intensified, making it more challenging to leverage current gameplay types and player segments.
• Operating expenses in Macao increased by approximately 7%, contributing to negative operating leverage due to revenue declines in key segments.

Q & A Highlights

Q: How is Las Vegas Sands balancing share repurchases between LVS and SEL, and what is the strategy behind these allocations? A: Robert Goldstein, Chairman and CEO, explained that the company sees meaningful value in both LVS and SEL equity. They plan to be active in repurchasing shares of both, aiming to reach a 74.9% stake. The current valuation of LVS is considered attractive, prompting aggressive share buybacks.

Q: Can you elaborate on the impact of higher hold percentages on mass gaming at Marina Bay Sands and its effect on EBITDA? A: Patrick Dumont, President and COO, noted that the hold percentage is influenced by customer betting behavior, which can vary. The introduction of smart tables will provide more precise data on hold percentages. The mass segment, particularly premium mass, has been a significant driver of Marina Bay Sands' performance, and the company expects continued growth as renovations are completed.

Q: What are the plans for ramping up the Londoner project, and how will it affect other properties? A: Patrick Dumont stated that the focus will be on ramping up the Londoner Grand, with all rooms and suites now available. The company aims to leverage this asset to drive customer growth and revenue. While the Londoner is a priority, efforts will also be made to maintain and grow existing properties like the Venetian and Parisian.

Q: How is Las Vegas Sands addressing the competitive market dynamics in Macao, particularly in the premium mass segment? A: Robert Goldstein acknowledged the competitive nature of the Macao market, especially in the premium mass segment. The company plans to utilize its assets, including the newly opened Londoner, to compete effectively. Despite challenges, they are optimistic about regaining market share and improving performance.

Q: What is the outlook for non-gaming investments in Macao, and how is the company aligning with government expectations? A: Grant Chum, CEO and President of Sands China, mentioned that the company is committed to non-gaming investments as per government expectations. They have completed significant projects like the Venetian arena upgrade and are focusing on developing sports and mega events. The government is encouraging specialization among concessionaires to enhance non-gaming offerings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.