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Big-time resort and casino operator Las Vegas Sands Corp. reported its Q4 2023 results, which concluded on Dec. 31, 2023, while looking at its future and the possibilities of New York and Texas casinos.
With net revenue of $2.92 billion, there was a whopping 166.0% increase compared to Q4 2022. The net income reached $469 million, while the operating income remained strong at $710 million.
Consolidated adjusted property EBITDA for Q4 2023 was distinctive from Q4 2022, as the former recorded $1.20 billion while the latter was $222 million.
In a news statement, Chairman and Chief Executive Officer Robert G. Goldstein attributed the company’s success to the “improvement” that was experienced in Macau and Singapore. In a Las Vegas Sands news release, he said:
“We were extremely pleased with our financial and operating results for the quarter, which reflect the ongoing improvement in the operating environment in both Macao and Singapore. We remain deeply enthusiastic about our opportunities for growth in both Macao and Singapore in the years ahead.”
Last year, more than 40.8 million individuals visited Southern Nevada, marking a 5.2% year-over-year surge and achieving the highest figures since the pre-pandemic year of 2019.
“In Macao, the ongoing recovery across all segments continued during the quarter. Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world center of business and leisure tourism positions us well as the ongoing recovery in travel and tourism spend progresses,” Goldstein continued.
Sands gives a glimpse of the future in New York and Texas
Concerning the expansion into new markets, Sands is currently in negotiations to secure approval for a casino license in downstate New York. Although it’s challenging to gauge their proximity to achieving this milestone at the moment, Goldstein was asked about a New York casino licenses:
“We think we have a very compelling bid, but we don’t have any great insight that will happen or not,” Goldstein said during question-and-answer portion of the earnings call. “And either way, win or lose, we have a decision calendar year ’24, that’s our hope. But I think it’d be silly to take any insight beyond the governor’s comments. I think we just — we work very hard on this project.
“We believe we have a really good chance of getting one. But I don’t give you — I couldn’t give you any guidance beyond that.”
Another question involved Sands’ interest in bringing casino-resorts to Texas after the family behind the company purchased the Dallas Mavericks in November. Patrick Dumont, president and chief operation officer, talked about the potential of Texas:
“In terms of — in terms of Texas, I think the most important thing is that Las Vegas Sands is actively, you know, trying to facilitate the development of integrated resorts in the state of Texas and through the legalization of gaming. And so, we’re very excited about it,” Dumont said. “We think it’s an unbelievable market. Over time, we hope that it happens. I can’t tell you when it’s going to be, but we’re very focused on it as a company, and we’d like the opportunity to develop some very unique tourism assets, specifically in Dallas. You know, we think that’s a great market.
“We’ve been very focused on it, and we think the opportunity there would be a great one. In terms of the family’s activities in Texas, I think we like the state. We’re very obviously happy with our investment there. We’re very excited about it. And we’ll look to be a part of the business community there. But in terms of LVS, we’re very focused on bringing integrated resorts or destination resorts to the state of Texas and the development opportunity that would exist there.”
Marina Bay Sands’ outstanding results were driven by new offering
In Singapore, Marina Bay Sands garnered $1.0 million in revenue for Q4 2023 and $544 million in adjusted property EBITDA. Goldstein, who was impressed by the result, stated that the boost recorded from the facility was a result of improved services and the advent of their suite product.
“In Singapore, Marina Bay Sands once again delivered outstanding levels of financial and operating performance. Our new suite product and elevated service offerings position us well as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues to advance.
“We are fortunate that 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.”
Las Vegas Sands shares and capital expenditure report
Reports on the Sands shares revealed that the company repurchased $505 million of company stock and also repurchased $250 million of Sands China stock for the fourth quarter of 2023.
“We repurchased $505 million LVS shares under our share repurchase program during the quarter. We look forward to utilizing our share repurchase program to return excess capital to stockholders in the future.
“In addition, we entered into an agreement during the quarter to purchase approximately $250 million of Sands China stock, which, upon settlement of the agreement, is expected to increase our ownership interest in Sands China,” Goldstein added.
A quarterly dividend of $0.20 per common share was paid in Q4 2023. The next quarterly dividend payment of $0.20 per common share to stockholders will fall on Feb. 14, 2024.
Sands capital expenditure amounted to $325 million for the fourth quarter of 2023. Breaking this down, the operator recorded:
- $184 million for Marina Bay Sands
- $109 million in Macau
- $32 million went for development and others
To sum up the entire year, Sands saw $2.31 billion in operating income for the full year 2023 and an operating loss of $792 million in 2022. Meanwhile, the net income from continuing operations was $1.43 billion, compared to a net loss of $1.54 billion in 2022.
