Las Vegas Sands Corp.
CEO : Mr. Robert Glen Goldstein
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 10.8% YoY | 19.6% | 29.4% | 2023-01-27 |
Rob Goldstein says,
Investment in Macao
- LVS remains committed to investing in Macao, the largest integrated resort market globally.
- The company’s diversified IR model with continuous investment in non-gaming segments, including MICE, hotel suites, live entertainment, retail, and food and beverage, positions it well to capture the growth opportunity.
- The commitment to develop non-gaming is the core of LVS’s investment and operating strategy for the past two decades.
- The new concession is a win-win situation for LVS, and the $3.8 billion commitment is just a baseline.
Recovery in Macao
- Travel restrictions have been lifted, and indications are extremely positive, with significant improvement seen in property visitation, gaming volumes, retail sales, and hotel occupancy.
- LVS remains positive on investments in The Londoner and Four Seasons, which position the company well as the market recovers.
- The quality of LVS’s new products will also help drive high-value tourism from the region, especially the overseas markets.
Normalized EBITDA in Singapore
- Normalized EBITDA and gaming volumes are back now to the 2019 levels, with EBITDA reaching $386 million for the quarter.
- Rolling volumes are approaching 2019 level, and mass win per day is now exceeding the level of 2019.
- LVS has also delivered strong performance in non-gaming across all segments, including retail, mall, hotel, F&B, and MICE, with retail being especially noteworthy with a 26% increase in tenant sales per square foot versus 2019.
- Marina Bay Sands is poised for further growth as all of LVS’s markets recover and become free of travel restrictions, and airline lift continues to recover.
Grant Chum says,
Visitation Recovery in Hong Kong
- Mainland Chinese visitation recovery rate at about 30% versus 2019 CNY
- Overall visitation recovery rate at 40%
- Hong Kong visitation recovery rate has been higher due to ease of travel and longer pandemic stabilization
- Transportation support for Hong Kong visitors opened on the eighth of January, leading to a rapid increase in visitations
Quality of Revenues
- Premium customers are coming back first in reopening
- Core customers are coming back in a much bigger percentage than overall visitations
- Patronage from all regions that visit during Chinese New Year has been very high
- Outperforming visitation recovery in terms of volumes and revenue
Outperformance in Property Visitations
- Recovery rate in visitations to LVS’s own property is far outperforming the recovery in overall visitation numbers in the market versus 2019
Q & A sessions,
Macao and Singapore Segmentation
- LVS expects to get more than their fair share of the rolling business in MBS and the premium mass customer to visit more into Macao.
- They plan to push people into Macao to see their products.
- LVS believes Macao has the capacity and lots to offer, making it a very strong international destination. They plan to be very aggressive and represent base mass and premium mass business in Macao.
Macao Market Outlook
- LVS believes in Macao strongly and sees it rebounding in the long term.
- The recovery trajectory and the speed of recovery are uncertain, but LVS feels positive about what’s going to happen in Macao in the long term.
- LVS plans to invest money in Macao and get back to where they were in the past.
New York Opportunity
- LVS is excited about the exceptional opportunity in New York, which is a huge market with limited capacity.
- They plan to build a truly large hotel with spa convention space, dozens of restaurants, a new theater, a huge entertainment feature, and a transformational product.
- They believe their approach of large-scale with numerous non-gaming assets and lots of meeting space will positively impact the community and grow tourism.
Customer Spending in Macao
- LVS is seeing the right customers show up, and they’re spending in both gaming and retail.
- The market numbers are gratifying, indicating recovery and encouraging start to this reopening after the last three years.
Margin and Cost Structure
- LVS has a lean cost base and expects its mix to be more favorable going forward with higher-margin non-gaming segments.
- The actual flow-through in the percentage margin will depend on the rate of volume recovery and the market’s growth potential.
- LVS expects to be more productive and efficient due to past experience and the changed product mix.
No bad stock 