Las Vegas Sands posts lower Q1 profit as Macau revenue declines

Las Vegas Sands Corp (LVS) reported a decline in first-quarter revenue and earnings on Wednesday, weighed down by softer performance in its Macau operations despite record margins at its Marina Bay Sands property in Singapore.

Net revenue for the quarter ended March 31 fell to $2.86 billion from $2.96 billion a year earlier. Operating income dropped to $609 million from $717 million, while net income slid to $408 million from $583 million in the same quarter of 2024.

Adjusted property EBITDA came in at $1.14 billion, down from $1.21 billion a year ago.

Sands China, which operates the company’s properties in Macau, reported a 5.7% decline in net revenue to $1.70 billion. Net income at the unit dropped to $202 million from $297 million a year ago. A low hold on rolling play negatively impacted adjusted property EBITDA by $10 million, the company said.

Despite the weaker Macau performance, Las Vegas Sands highlighted strong profitability at its Singapore flagship. Marina Bay Sands reported adjusted property EBITDA of $605 million, with a margin of 62%, which Chairman and CEO Robert Goldstein called "an extraordinary performance.”

“We continued to execute our strategic objectives during the quarter,” Goldstein said in a statement. “We remain enthusiastic about our opportunities to deliver industry-leading growth in both Macao and Singapore in the years ahead as we execute our capital investment programs in both markets."

The company spent $379 million in capital expenditures during the quarter, including $197 million in Macau and $175 million at Marina Bay Sands. Interest expense totaled $174 million, down from $182 million a year earlier, while its weighted average borrowing cost edged down to 4.9%.

The effective income tax rate rose sharply to 13.4% from 2.8%, driven largely by Singapore’s 17% statutory rate, the company noted.

Las Vegas Sands returned $450 million to shareholders through stock buybacks during the quarter, repurchasing approximately 10 million shares at an average price of $44.59. The board has increased its repurchase authorization to $2.0 billion. A quarterly dividend of $0.25 per share was paid, with the next dividend scheduled for May 14.

Goldstein noted that while the Macau market remains competitive and growth has softened, “we have the strongest assets and can perform better despite the challenging macro environment.”

The company said The Londoner Macau is now fully open with 2,405 rooms and suites, and it expects improved performance during the upcoming Golden Week in May.