Las Vegas Sands posts 8.6% revenue increase in Q2 amid Macau, Singapore growth

Las Vegas Sands (LVS) reported a net revenue of $2.76 billion for the second quarter of 2024, up 8.6% from $2.54 billion in the same period last year. Net income rose to $424 million, a 15.2% increase from $368 million in Q2 2023, driven by solid performances in Macao and Singapore. 

Consolidated adjusted property EBITDA reached $1.07 billion, compared to $973 million in the previous year, the company said in a statement on Wednesday. However, while most key figures were up, the company traded lower Wednesday in post-market trading, as gains fell short of market expectations.

Net revenue fell $60 million short of expectations, according to market consensus. LVS stock traded at $39.25 after hours, below its 54-week low of $40.17. The stock is down more than $20 from its high on Aug. 1.

Despite this, the Las Vegas-based firm benefited from the sustained rebound in its Macau operations, with total net revenues for Sands China Ltd. increasing by 8% to $1.75 billion, and net income rising to $246 million from $187 million in Q2 of 2023. While visitation in the gambling hub is still down from pre-pandemic 2019, Sands has reinvested in additional suites anticipating further growth in the market.

LVS's Macau operations reported an adjusted property EBITDA of $561 million, though this figure was negatively impacted by $4 million due to a low hold on rolling play. Despite this, the region showed continued post-pandemic recovery, bolstered by investments aimed at enhancing tourism.

Meanwhile, Marina Bay Sands in Singapore delivered an adjusted property EBITDA of $512 million, benefiting from a $64 million positive impact due to a high hold on rolling play. The resort's strong financial performance contributed significantly to the company’s overall results.

"Our financial and operating results for the second quarter of 2024 reflect growth in both Macao and Singapore compared to the second quarter of 2023," said Robert G. Goldstein, Chairman and CEO. "We remain enthusiastic about our opportunities to deliver industry-leading growth in both markets in the years ahead, as we execute our substantial capital investment programs in both Macao and Singapore."

Interest expense decreased to $186 million compared to $210 million in the prior year quarter, while the effective income tax rate rose to 14.5% from 11.8% in the year-ago quarter, driven primarily by a 17% statutory rate on Singapore operations.

LVS repurchased $400 million worth of common stock during the quarter, with an additional $645 million remaining authorized under its share repurchase program. The company declared a quarterly dividend of $0.20 per share, payable on August 14, 2024.

The firm reported unrestricted cash balances of $4.71 billion and available borrowing capacity of $4.43 billion. Total debt stood at $13.72 billion as of June 30. In May, LVS issued $1.75 billion in senior unsecured notes, using the proceeds to redeem outstanding notes due in August 2024 and repurchase $175 million of other senior notes.

Capital expenditures totaled $285 million for the quarter, with significant investments in Marina Bay Sands ($140 million) and Macao ($131 million).

Looking ahead, LVS is awaiting decisions on its bid for a New York casino license and Texas integrated resort opportunities. The company has also expressed interest in the gaming industry in Vietnam, pending further development actions.

"Our financial strength and industry-leading cash flow continue to support our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and our program to return excess capital to stockholders," Goldstein said.

New York officials are expected to update on their decision on the awarding of up to three downstate licenses later this year or early next year. Meanwhile, action in Texas, where Sands has lobbied to build a resort, is not expected until 2025, the point at which the legislature is set to meet again.

“We’re spending a lot of time in New York and Texas,” Sands President and COO Patrick Dumont confirmed. “We’ve been looking at Thailand. I think Thailand is a very interesting opportunity. The market there is very strong for different types of tourism, depending on the way it’s set up, and the opportunity that’s there in terms of structure could be very interesting for us."

"If Thailand becomes available, we’d be very interested. It’s early days yet and we’ve been spending time there, along with the rest of the industry, looking to see if we can be helpful to that process. We’re waiting to see what happens.”