Las Vegas Sands released its third-quarter financial results for 2023 on Wednesday, which showed an increase from last year’s net revenue.
The Q3 2023 quarter, which ended on Sept. 30, racked up $2.80 billion in net revenue from $1.01 billion in Q3 2022.
Las Vegas Sands Q3 2023 highlights
- A recovery in travel and tourism spending in Macau and Singapore
- Net revenue at $2.80 billion, with Q3 2022 at $1.01 billion
- Net income at $449 million, with last year’s quarter at $380 million
- Marina Bay Sands Adjusted Property EBITDA reached $491 million with Q3 2022 at $343 million
- Consolidated adjusted property rose to $1.12 billion compared to last year’s quarter, which was $191 million
- Stock Repurchase Authorization of $2.0 billion through Nov. 3, 2025
Robert G. Goldstein, chairman and chief executive officer, who gave a breakdown of the report, said in a Las Vegas Sands press release:
“We were pleased to see the recovery in travel and tourism spending in both Macao and Singapore progress during the quarter. We remain deeply enthusiastic about our opportunities for growth in both markets in the years ahead.
In Singapore, Marina Bay Sands again delivered outstanding levels of financial and operating performance. Our new suite product and elevated service offerings position us to deliver future growth as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues.”
Additional factors impacting earnings
In the third quarter of 2023, Las Vegas Sands had interest costs of $200 million, higher than the $183 million in the same period last year. During Q3, the company’s average borrowing cost was 5.4%, while it was 4.8% in the third quarter of 2022.
However, the increase in expenses was balanced by a rise in interest income from $41 million to $79 million in the 2023 Q3.
The Las Vegas Sands 2023 third-quarter income tax rate was 21.4%, up from 18.8% in the same period the previous year. This increase was mainly due to a 17% statutory tax rate applied to the company’s operations in Singapore.
Stockholders Q3 2023 update
For this last quarter, the operator gave a $0.20 per common share dividend. It has also promised to do the same with the upcoming quarterly dividend, at $0.20 per common share, scheduled for payment on Nov. 15, 2023, to shareholders of Las Vegas Sands, who are officially recorded as of Nov. 7, 2023.
“Our commitment to making industry-leading investments in our team members, our communities and our Integrated Resort property portfolio positions us exceptionally well to deliver strong growth in the years ahead,” Goldstein said.
“Our financial strength supports our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and the return of capital to stockholders.”
Goldstein mentioned that as of Oct. 16, 2023, the company’s Board of Directors has approved to increase the maximum amount of common stock that can be repurchased from $916 million to $2.0 billion, with the expiration date for this authorization being extended to Nov. 3, 2025.
“After reinstating our dividend last quarter, I am pleased to announce that our board of directors has authorized $2.0 billion of share repurchases under our stock repurchase program through 2025. We look forward to utilizing our share repurchase program to return excess capital to stockholders.”
Las Vegas Sands on future plans and investments
The company plans to start buying back its shares again in the last quarter of 2023. The exact timing and amount of shares it’ll buy back will depend on how well the company is doing financially, its profits, the legal requirements, other investment options, and how the stock market is doing.
Its capital expenditure, which encompassed the construction and maintenance of its establishments, reached $330 million.
- $141 million for the Marina Bay Sands
- $44 million in Macau
- $145 million for corporate activities, developmental purposes, and others
In terms of development, Las Vegas Sands is in pursuit of a downstate New York gaming license for the development of a multi-billion-dollar casino project on Long Island, New York. Following this, it has closed in on a deal for a long-term lease purchase of the site.