Sands' Q3 revenue reaches $2.8B, boosted by lifting of Covid-19 restrictions in Macau and Singapore

Las Vegas Sands shared its financial results for the third quarter ended September 30, 2023. Net revenue for the period was $2.80 billion, a 178.1% increase over the $1.01 billion in the prior year, driven by the ongoing impact of Covid-19 restrictions being dropped in Macau and Singapore.

According to the report, operating income was $688 million, compared to an operating loss of $177 million in the prior year quarter. Net income from continuing operations in the third quarter was $449 million, a marked improvement over the net loss of $380 million in the prior year.

Pandemic-related measures were in place across both Macao and Singapore in Q3 last year. While these were less strict than earlier in the pandemic, they still impacted Sands' performance during the quarter in 2022.

However, this year has been very different for Sands, with both Macao and Singapore having withdrawn almost all remaining measures. This means there are no longer restrictions on travel into each region, while casinos can operate as normal.

Robert G. Goldstein, Chairman and CEO, said: "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 Macao, we were pleased to see the recovery in both gaming and non-gaming segments progress during the quarter. We remain enthusiastic about the opportunity to continue our investments to enhance Macao's tourism appeal to travelers from throughout the region, including foreign visitors to Macao," he noted.

"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," the CEO added.

Macau's Venetian

Breaking down the revenue figure for Q3 by segments, Casino remains by far its core business, as revenue in the quarter amounted to $2.01 billion, up 215.2% from last year.

Furthermore, Room revenue also increased 178.1% to $342 million, while Food and Beverage revenue hiked 90.2% to $156 million. Moreover, the operator also noted a 68.9% rise in Mall revenue to $201 million while Convention, Retail, and Other revenue jumped 100.0% to $88 million.

Turning to spending, operating costs were 78.3% higher at $2.11 billion, with the main outgoing being resort operations at $1.68 billion. Sands also noted $117 million in net finance costs.

Pre-tax profit stood at $571 million, in contrast to the $320 million loss in 2022. Sands paid $122 million in tax and also accounted for a $69 million loss from non-controlling assets. As such, it ended the quarter with a net profit of $380 million, compared to a $239 million loss last year. Adjusted property EBITDA hiked 487.4% from $191 million to $1.12 billion.

Marina Bay Sands in Singapore

As for geographical performance, Macau remains Sands’ primary market. Revenue during the third quarter rocketed 592.4% year-on-year to $1.79 billion.

The Venetian Macao led the way with $723 million in revenue, ahead of The Londoner Macao on $518 million. The Parisian Macao posted $244 million in revenue, The Plaza Macao and Four Seasons Macao $192 million, while Sands Macao posted $83 million. A further $29 million came from ferry operations and other activities.

Meanwhile, revenue at Marina Bay Sands in Singapore also jumped 34.3% to $1.02 billion. The operator also reported $61 million in intercompany royalties.

Performance update

Revenue for the nine months to September 30 reached $7.46 billion. This is 149.5% higher than $2.99 billion during the same period in 2022. Macau's revenue jumped 297.0% to $4.70 billion and Singapore's 52.0% to $2.79 billion.

Casino revenue topped $5.41 billion, with Rooms revenue at $881 million and Food and Beverage at $423 million. Some $535 million in revenue came from Mall activities and $207 million from Convention, Retail, and others.

According to the report, spending increased 61.8% to $5.85 billion and financial costs amounted to $386 million. As such, this left a pre-tax profit of $1.18 billion, compared to a $1.10 billion loss in 2022.

Sands paid $221 million in tax and accounted for $123 million in non-controlling assets loss. This left a net profit of $839 million, which was 58.1% lower than the previous year when figures included $2.90 billion in income from discontinued operations. Adjusted EBITDA for the nine months was $2.89 million, up 466.1% from last year.

Sands' Robert Goldstein

"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. 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 commented.

"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," he concluded.

See Las Vegas Sands' full third-quarter report here.