Las Vegas Sands said that the lifting of Covid restrictions in China gives them confidence at the beginning of 2023, after it reported widening losses at 2022.
Robert G. Goldstein is the chairman and chief executive officer. He stated that Las Vegas Sands will be able to expand its horizons following the pandemic by reducing travel restrictions.
Goldstein stated that “In Singapore we were happy to see the strong recovery continue at Marina Bay Sands throughout the quarter with the property delivering record levels in both mass gaming revenue and retail revenue.”
“We are thrilled to be able to introduce our suite product to more clients as airlift capacity increases and growth in visitation to China and the wider area is enabled by the relaxation of travel restrictions.”
He said that Las Vegas Sands would be more prominent in Macau, especially since the operator was granted a concession to operate there until December 2022.
He said, “In Macau we were pleased to receive an additional gaming concession during quarter. This will allow us to continue our decades-long dedication to making investments that improve the Macau’s business and leisure tourism appeal and support its development to become a global centre for business and leisure tourism.” We remain confident in Macau’s future and consider Macau an excellent market for capital investment.
Financial results
The Asia-facing gaming company , which bought its Las Vegas operations for $6.25bn/EUR5.56bn last February said that travel restrictions and lower visitation continued to have an impact on its financial performance in the three months up to 31 December 2022.
Macau’s flagship properties were still affected. However, LVS enjoyed a record performance at Singapore and stated that it is confident that customers will return to the country in 2023 and beyond.
The net revenue for the three months ended 31 December 2022 was $1.12bn. This is 10.8% more than the previous quarter, which was based on continued operations. This was mainly due to an increase in guest numbers, which grew almost 50% to $154.0m. Food and beverage take-outs more than doubled to $103.0m. The casino accounted for $654.0m. This was slightly higher than last year.
Macau operations saw a dip across the board, with all of its properties experiencing a decline in revenue compared with the previous year. The total takings at five casinos and ferry operators fell by 32% to $444.0m. Adjusted property EBITDA lost $51.0m
However, the resort’s revenue in Singapore at Marina Bay Sands grew by 85%, to $682.0m. Adjusted property EBITDA rose 54%, to $273.0m.
The main reason for an increase in operating expenses was the higher resort operations costs which rose by 18% to $908.0m.
Operating loss was $166m compared to $138m for the previous year quarter. The fourth quarter 2022 net loss from continuing operations was $269m, as compared to $315m for the fourth quarter 2021. Consolidated adjusted property EBITDA (consolidated) was $222m, as compared to $251m the previous year quarter.
LVS reported revenue of $4.11bn for the year ending 31 December 2022. This was 2.8% less than 2021 due to a decline in casino and mall takes. Operating loss for the full year 2022 was $792m, as opposed to $689m in 2021.
Goldstein said: “While travel restrictions continued to impact our financial results during the quarter,” and added, “We remain confident in a strong recovery in travel and tourism spending across all our markets and are excited about the chance to welcome back more guests to our properties in 2023 and the years ahead.”
“Looking forward, our industry-leading investments into our team members, communities, and our market-leading Integrated Resort offerings place us exceptionally well to deliver growth as travel restrictions become less restrictive and the recovery takes root. Our financial strength allows us to continue our investment and capital expenditure programs both in Macau and Singapore as well as pursue growth opportunities in other markets.
LVS sold its Las Vegas properties, operations and assets, including the Venetian Resort to VICI Properties in February 2022. Apollo Global Management managed the funds.
The March 2021 deal includes the sale of The Venetian Resort which comprises The Venetian and Palazzo properties.
