• Macau Market Revenue Growth: 6% increase in Q4 2024 compared to Q4 2023.
• Mass Gaming Revenue Growth in Macau: 5% increase in Q4 2024 compared to Q4 2023.
• Macau EBITDA: $571 million for Q4 2024.
• Macau EBITDA Margin (Excluding Londoner): 35.1%, down 230 basis points from Q4 2023.
• Turnover Rents in Macau: $27 million lower in Q4 2024 compared to Q4 2023.
• Venetian Margin: 36.7% for Q4 2024.
• Plaza and Four Seasons Margin: 37.2% for Q4 2024.
• Singapore Adjusted Property EBITDA: $537 million for Q4 2024.
• Singapore EBITDA Margin: 47.2% assuming expected hold on rolling play.
• Stock Repurchase: $450 million of LVS stock repurchased in Q4 2024.
• Quarterly Dividend: $0.20 per share, with an annual increase to $1 per share for 2025.
• Sands China Stock Purchase: Approximately $250 million purchased, increasing LVS equity interest to 72.3%.

• Warning! GuruFocus has detected 3 Warning Sign with LVS.

Release Date: January 29, 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 6% growth in Macau market revenue for Q4 2024 compared to the same period in 2023.
• The company opened the Londoner Grand Casino and introduced 315 Londoner Grand suites, with plans to have a full complement of 1,500 suites and 905 rooms by May 2025.
• Marina Bay Sands in Singapore achieved $537 million in adjusted property EBITDA, reflecting a 71% growth compared to Q4 2018.
• LVS repurchased $450 million of its stock and increased its annual dividend to $1 per share for 2025.
• The company is nearing completion of its Londoner Grand renovation program, which is expected to strengthen its competitive position and drive future EBITDA growth.

Negative Points

• Macau's EBITDA was impacted by lower-than-expected hold in the rolling segment, reducing potential EBITDA by $22 million.
• Turnover rents in Macau were $27 million lower in Q4 2024 compared to the previous year.
• The Londoner renovation caused a 20% reduction in room availability, impacting margins and EBITDA.
• Retail sales in Macau were down year-over-year, affecting turnover rent at the Four Seasons Mall.
• Concerns were raised about potential competition from iGaming in New York, which could impact the return profile of a potential casino in that market.

Q & A Highlights

Q: Patrick, with the recent activity in Sands China stock and the dividend increase, has your capital allocation strategy changed, particularly regarding SCL shares? A: Patrick Dumont, President and COO, stated that they believe strongly in the SCL story and have been investing in growth in Macau for years. The strategy is to grow their business and strategic advantages, and they plan to continue acquiring more SCL shares, demonstrating their belief in its future value.

Q: Regarding Marina Bay Sands (MBS), how much of the recent growth is due to market conditions versus the capital investments made? A: Robert Goldstein, CEO, emphasized that the growth is not a one-time event but an ongoing acceleration due to strong market conditions and the fruition of their investments. The combination of a strong market and great assets is driving exceptional growth, and they expect this to continue.

Q: Can you provide insights on the Chinese consumer and the potential return to pre-COVID levels in Macau? A: Patrick Dumont noted that while the Chinese economy's strength would benefit their business, they are satisfied with their current direction and investments. Grant Chum, CEO of Sands China, added that the gaming revenue has been resilient, with strong premium business, despite some weaker retail sales.

Q: How do you view the potential impact of iGaming legalization in New York on a future casino there? A: Robert Goldstein expressed concerns about iGaming potentially diluting the value of land-based casinos. He acknowledged the inevitability of iGaming in markets with land-based gaming and sports betting, which could impact the return profile of a potential casino in New York.

Q: With the Londoner coming back online, how do you anticipate its ramp-up and impact on margins? A: Patrick Dumont explained that the Londoner had a significant margin drag due to reduced room inventory. As rooms come back online, they expect increased productivity and cash flow. The Londoner is positioned to be a world-class asset, and its full inventory should enhance competitive positioning and profitability.

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