Integrated resort and casino operator Las Vegas Sands has published its financial results for the quarter ended December 31, 2019, citing growth in net revenue, operating income, EBITDA and net income.
Net revenue was $3.51bn, an increase of 1% from the prior year quarter. Operating income increased 6.9% to $934m, while net income increased to $783m compared to a net loss of $40m year-on-year due to improved operating results and non-recurring non-cash income tax expense of $727m for US tax reform in 2018.
Consolidated adjusted property EBITDA was $1.39bn, an increase of 9.1% from the prior year quarter due to increases in each of the firm’s jurisdictions, led by Singapore increasing by $95m.
Sheldon G Adelson, Chairman and CEO, told investors: “We delivered solid financial results in the quarter, with Adjusted Property EBITDA reaching $1.39bn. We remain enthusiastic about our future growth opportunities in Asia. This year, we will introduce approximately two million square feet of luxurious suite accommodations on the Cotai Strip with the opening of the Grand Suites at Four Seasons Macao and The Londoner Tower Suites.
“Additional tourism and entertainment amenities of The Londoner Macao will debut throughout 2020 and 2021. Looking further ahead, the expansion of Marina Bay Sands in Singapore will meaningfully increase our suite capacity and introduce a state-of-the-art entertainment arena, both of which should contribute to future growth. We are also aggressively pursuing additional development opportunities in new markets, including in Japan.
“Finally, we remain deeply committed to maintaining our industry-leading financial strength while continuing to increase the return of capital to shareholders. As previously announced, our annual dividend for the 2020 calendar year will increase to $3.16 per share, or $0.79 per share per quarter.”
Net income attributable to Las Vegas Sands in the fourth quarter of 2019 was $629m, compared to net loss of $170m in the fourth quarter of 2018, while diluted earnings per share in the fourth quarter of 2019 was $0.82, compared to diluted loss per share of $0.22 in the prior-year quarter. The increase was primarily a result of nonrecurring non-cash income tax items due to the implementation of US tax reform in 2018.
Adjusted net income attributable to Las Vegas Sands was $678m, or $0.88 per diluted share, compared to $598m, or $0.77 per diluted share, in the fourth quarter of 2018. Hold-normalized adjusted earnings per diluted share was $0.80.
Full year 2019 operating income decreased 1.4% to $3.70bn, compared to $3.75bn in 2018, due to increased corporate expense. Net income attributable to Las Vegas Sands increased 11.8% to $2.70bn, or $3.50 per diluted share, in 2019, compared to $2.41bn, or $3.07 per diluted share, in 2018. The increase in net income attributable to Las Vegas Sands reflected the gain on the sale of Sands Bethlehem, partially offset by the decrease in operating income and increases in income tax and interest expense.
