Las Vegas Sands, a renowned casino operator, has released its second-quarter financial results, reflecting the ongoing impact of the Covid-19 pandemic on its performance. Despite a decline in net revenue compared to the previous year, the company experienced positive growth in Singapore, with Marina Bay Sands doubling its revenue.
The results mark the first reporting period since Las Vegas Sands completed the sale of its US operations. While pandemic-related restrictions continue to affect financial performance, the company remains confident in the recovery of the travel and tourism industry.
Pandemic Challenges and Positive Performance in Singapore:
Las Vegas Sands reported a net revenue of $1.04 billion for the second quarter, reflecting the ongoing impact of the Covid-19 pandemic on its operations. However, the company experienced positive results in Singapore, particularly at Marina Bay Sands, where revenue doubled compared to the previous year. The CEO of Las Vegas Sands, Robert Goldstein, emphasized the constructive recovery in Singapore, with Marina Bay Sands contributing $319 million in adjusted property EBITDA during the quarter. Despite travel restrictions hindering financial performance, customer demand for the company’s offerings remains robust.
Macau Operations and Revenue Decline:
Las Vegas Sands’ Macau operations, including The Londoner, The Venetian, The Parisian, and Sands Macao, generated a combined revenue of $374 million, representing a year-on-year decline of 56.2%. Each of the operators experienced decreases in revenue, with the Venetian Macau reporting a 61.6% fall, totaling $150 million. The Londoner Macau, Plaza Macau, and Four Seasons Macau contributed $79 million each, representing declines of 58.2% and 36.8%, respectively. The remaining revenue in Macau was derived from The Parisian Macau, Sands Macau, ferry operations, and other sources, totaling $66 million.
Impact of Casino Closures and Reopening Plans:
Currently, all casinos in Macau are closed as the region continues to manage the effects of the Covid-19 pandemic. However, they are set to reopen from 23 July, which is anticipated to positively impact Las Vegas Sands’ operations in the region. The reopening will allow the company to resume its casino activities and potentially improve its financial performance.
Strong Performance in Marina Bay Sands, Singapore:
Marina Bay Sands in Singapore demonstrated remarkable performance, reporting $679 million in revenue, more than doubling its revenue from Q2 2021. The property’s casino revenue grew by 124.2% year-on-year, while food and beverage revenue and convention, retail, and other revenue also saw significant increases. This positive performance contributed to the overall recovery of Las Vegas Sands.
Financial Summary and Loss from Continuing Operations:
Las Vegas Sands’ overall revenue for the quarter declined by 10.9% compared to Q2 2021. Casino revenue accounted for the majority, totaling $709 million, a 14.1% decrease year-on-year. Mall revenue remained stable at $148 million, while rooms revenue declined to $97 million. However, food and beverage revenue increased by $13 million to reach $63 million, and convention, retail, and other revenue grew by 64.7% to $28 million. The company reported a loss of $147 million in operating expenses.
Outlook and Loan to Sands China:
Despite the ongoing challenges, Las Vegas Sands remains confident in the recovery of the travel and tourism industry. The company recently extended a loan of $1 billion to its subsidiary, Sands China, to support working capital and general corporate purposes. The loan is repayable by July 11, 2028.
Las Vegas Sands’ second-quarter results demonstrate the continued impact of the Covid-19 pandemic on its operations, with a decline in net revenue compared to the previous year. However, the company experienced positive performance in Singapore, particularly at Marina Bay Sands. The closure of casinos in Macau has affected overall revenue, but with plans for reopening in July, Las Vegas Sands anticipates improved financial performance. The company remains confident in the recovery of the travel and tourism industry and continues to support its operations through strategic decisions such as extending a loan to Sands China.