Las Vegas Sands (Sands) has published its Q3 2023 financial report, revealing an outstanding 180% year-on-year increase in net revenue, reaching $2.8 billion. This impressive growth is largely attributed to the reopening of Macau, prompted by the Chinese Government’s decision to abandon its zero-Covid policy after rare mass protests.
Resilient Recovery: A Look at Sands’ Revenue
Comparing Q3 2023 with Sands’ Q3 revenue in previous years, a remarkable recovery trend becomes evident. The data suggests that Q3 2023 is closing in on the $3.25 billion revenue achieved in 2019. Furthermore, Q3 2024 might mark a potential return to pre-pandemic revenue levels.
Rising Net Revenue in Macau
Sands’ individual casino net revenue in Macau has shown significant year-on-year growth. The Venetian, for instance, recorded over seven times its Q3 2022 revenue, amounting to $723 million compared to $104 million the previous year. Meanwhile, the Londoner Macao’s Q3 2023 revenue was nearly ten times greater than its Q3 2022 earnings, reaching $518 million, up from $57 million.
Analyzing Sands’ net revenue in Macau over the years further corroborates the overall recovery trend from the pandemic.
Marina Bay Sands: A Key Revenue Contributor
Sands’ Marina Bay casino resort in Singapore, one of Asia’s largest casinos, plays a pivotal role in maintaining strong operations and net revenue. Notably, it has surpassed its 2019 net revenue, contributing a substantial 35% of Sands’ total net revenue as a company. In Q3 2023, Marina Bay Sands generated $1.01 billion in net revenue, marking a notable increase from the $756 million in Q3 2022.
This revenue boost can be attributed, in part, to Macau’s recent challenges and the influx of the VIP market opting to gamble in Singapore instead. The continued growth of Marina Bay Sands underscores the ongoing success of this trend.
Record EBITDA and Profit
Sands also reported remarkable figures for adjusted property EBITDA in Q3 2023, totaling $1.12 billion, reflecting a substantial 486% increase from the previous year’s $191 million. Reopening in Macau, particularly the Venetian, has contributed significantly to this growth.
Comparing Sands’ adjusted property EBITDA since 2019 demonstrates its remarkable return to pre-pandemic levels.
Sands’ net income from continuing operations shows a remarkable shift, recording a Q3 2023 profit of $449 million. This marks a substantial turnaround from the negative $380 million reported in Q3 2022, as well as significant losses in Q3 2021 and 2020.
For the year-to-date, Sands has displayed remarkable financial growth, reporting a net revenue of $7.46 billion in 2023 compared to $2.99 billion in 2022. This financial success is mirrored in its adjusted property EBITDA, with a notable increase from $510 million in 2022 to $2.89 billion in 2023. Additionally, Sands has transitioned from a loss of $1.27 billion to a profit of $962 million for the same period.
Reduced Debt and Share Price Movements
Sands’ net debt, as of September 30, 2023, stands at $14.17 billion, reflecting a decrease from the $15.27 billion recorded in Q3 2022. The debt trend since 2019 illustrates the pandemic’s impact across four years.
Sands’ current share price is $46.64, with a year-high of $64.86 on May 1 and a year-low of $44.10 on October 5. This recent share price uptick is likely attributed to its impressive Q3 financial results.
Las Vegas Sands has delivered outstanding Q3 2023 results, showcasing a substantial recovery in net revenue, EBITDA, and profitability. This resurgence can be largely attributed to the reopening of Macau and the excellent performance of Marina Bay Sands in Singapore. As the company continues its trajectory of growth and financial strength, it aims to return to pre-pandemic revenue levels, signifying a remarkable resurgence in the gaming industry.