Las Vegas Sands misses profit estimates as Macao weakness weighs on Q4 results

Casino operator Las Vegas Sands (LVS) reported lower-than-expected fourth-quarter profit on Wednesday, as weaker performance in Macao offset gains in Singapore.  

The company posted net revenue of $2.90 billion, down 0.7% year-on-year, while net income fell to $392 million, compared with $469 million in Q4 2023. Adjusted property EBITDA declined to $1.11 billion, from $1.20 billion in the prior-year quarter.  

Las Vegas Sands reported adjusted earnings of $0.54 per share, missing analyst estimates of $0.58, according to LSEG data.  

Revenue from Macao operations declined 5% to $1.76 billion, with adjusted property EBITDA slipping to $571 million, down from $654 million in the previous year. The company cited low hold on rolling play, which negatively impacted EBITDA by $22 million.  

"The ongoing recovery continued during the quarter, although spend per visitor remains below pre-pandemic levels," CEO Robert G. Goldstein said. "Our long-term investments in Macao position us well for future growth."  

The group's flagship Londoner Macao property was affected by ongoing renovations, reducing available room inventory by 20%. Patrick Dumont, President and COO, acknowledged the situation: “Margins at the Londoner were directly impacted by the reduction in available room inventory during the quarter.”

Goldstein expects the Londoner’s performance to improve once upgrades are completed. "By May 2025, all 1,500 suites and 905 rooms will be available, boosting our capacity," he said.  

At Marina Bay Sands in Singapore, revenue rose 7.2% year-on-year to $1.14 billion, while adjusted property EBITDA slipped 1.3% to $537 million.  

Goldstein remained optimistic about Singapore’s growth trajectory. "Marina Bay Sands continued to deliver outstanding financial and operating performance," he said. "Our new suite product and elevated service offerings position us for additional growth."  

Las Vegas Sands continued its capital return program, repurchasing $450 million in common stock during the quarter. The company also increased its stake in Sands China Ltd. (SCL) to 72.3%, with a $250 million share purchase.  

A quarterly dividend of $0.20 per share was paid during Q4, with an increase to $0.25 per share set for February 19, 2025.  

Total debt stood at $13.62 billion as of December 31, 2024. Interest expenses fell slightly to $180 million, from $190 million a year earlier. Capital expenditures for the quarter totaled $547 million, with $345 million allocated to Macao and $194 million to Marina Bay Sands.  

Despite missing earnings estimates, Goldstein remains confident in the company’s long-term growth prospects. "We remain enthusiastic about our opportunities in both Macao and Singapore," he said. "Our financial strength supports continued investment and stockholder returns."