Las Vegas Sands Surpasses Wall Street Estimates, China Unit Spurs Success

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In an announcement made after the closing of the U.S markets today, Las Vegas Sands (LVS) exceeded expectations with its first-quarter results, which surpassed both the analysts’ earnings per share (EPS) forecast and the revenue estimate predicted by Wall Street. Notably, Sands’ China unit — operator of five casino resorts in Macau, including the infamous Venetian Macau — underpinned much of this success.

A commendable 75 cents a share were earned by the Venetian Macau organization in the March quarter — based on non-generally accepted accounting principles (non-GAAP) — from sales that racked up to a whopping $2.96 billion. This output notably overtook the analysts’ anticipated EPS of 62 cents on a revenue of $2.94 billion.

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The Sands’ stake in the blossoming administrative region appears to be rewarding, with Sands China expanding its market share in Macau. This expansion came as a result of their success in attracting an abundance of business from both regular and premium clients, as well as their provision of fine non-gaming amenities within their establishments.

The company’s first-quarter property earnings were reported to be $610 million before adjusting for interest, taxes, depreciation, and amortization (EBITDA). However, a low hold on rolling play resulted in a $31 million detraction from those earnings.

Yet despite this setback, the Sands China unit’s net revenue underwent a staggering 42% surge, rounding off at $1.80 billion within the first quarter. This was a dramatic increase from the earlier period’s total in the previous year.

In addition, their yet-to-be-fully-launched property, the Londoner Macau on the Cotai Strip, also reported substantial gains. Its net revenue skyrocketed from $283 million in the same quarter of the previous year to $562 million, making it the second-highest grossing property within Sands’ Macau portfolio.

The Venetian and the Londoner combined to generate $486 million of the total $610 million in adjusted property EBITDA, which was obtained exclusively in the singular Chinese territory where betting is permissible.

Adjacent to its gaming endeavors, the Sands is undertaking a vast expansion project, with plans to add roughly two million square feet to the luxurious suite accommodations on the Cotai Strip. As part of the operator’s ongoing commitment to enhancing the region’s non-gaming attractions, the hotel will comprise 600 guest suites — some of which have been inspired by English soccer legend, David Beckham.

Meanwhile, outside of Macau, Sands’ Marina Bay Sands in Singapore held its ground with impressive performances in the first quarter. The property reported a net EBITDA of $597 million, boosted by a hefty $77 million surge attributable to a high hold on rolling play.

The Sands also made strategic moves of its own, repurchasing $450 million of its shares during the first quarter, proving its firm foothold within the market. As Sands continues to improve airlift capacity and enhance both its product offerings and service levels, it is set to commence a mega $3.3 billion expansion of the Singapore casino hotel in July 2025.