Las Vegas Sands (LVS) reported a 22.4% rise in its Q2 net profit to $519 million.
The operator's Marina Bay Sands (MBS) resort in Singapore was mainly responsible for the outcome.
Key takeaways
- LVS' Q2 net profit was 22.4% higher at $519 million, bolstered by Marina Bay Sands' record showing.
- Its Macau operations underperformed, with Sands China net profit falling 13% while revenue increased modestly.
- LVS paid more than $970 million for share buybacks in Q2 and boosted its Sands China holdings to 73.4% ownership.
Company-wide revenue was up 15% year-over-year to $3.18 billion, despite earlier analyst predictions quarterly income would be approximately $2.83 billion. The Singapore division achieved record levels, with revenue up 36% to a record $1.4 billion and EBITDA up 50% to $768 million.
Yet, Macau’s performance remained more muted. While Sands China net revenue increased 2.5% to $1.8 billion, net income dropped 13% to $214 million. Adjusted property EBITDA edged up just 0.9% to $566 million.
Among Macau properties, only Londoner Macao posted growth, increasing its casino profit to $495 million from $318 million. Jefferies analysts attributed this to improved margins following the full reopening of all rooms after a $1.2 billion renovation.
"We remain enthusiastic about our opportunities to deliver industry-leading growth in both Macao and Singapore as we realize the benefits from our recently completed capital investment programs in both markets," said Robert G. Goldstein, Las Vegas Sands chairman and chief executive officer.
Las Vegas Sands begins $8B resort project in Singapore
LVS also recently broke ground on an $8 billion ultra-luxury integrated resort in Singapore. The development, separate from MBS, will include a 55-story all-suite hotel, gaming space, luxury retail, and 200,000 square feet of meeting facilities.
The project, designed to operate independently of the primary MBS property, will also include the Skyloop, a 76,000-square-foot rooftop space, and other amenities.
It will feature 570 suites and is aligned with Singapore’s “Tourism 2040” vision, which aims to triple revenue from meetings, incentives, conferences, and exhibitions (MICE) travel.
Las Vegas Sands exits New York casino project amid iGaming concerns
LVS formally withdrew from its $4 billion casino bid at Nassau Coliseum in April, citing concerns over iGaming cannibalization. The company warned on multiple occasions that online gambling legalization could threaten the project's viability.
Executives said capital would be better spent on share repurchases.
In Q1, LVS already bought back $450 million worth of shares. The company previously secured a 42-year lease for the Nassau site, replacing a 99-year lease invalidated after legal action led by Hofstra University, a key opponent of the casino proposal.
