Las Vegas Sands exploring US land-based casino opportunities

Las Vegas Sands (LVS) has published its financial results for Q1 2022, declaring a net revenue of $943m a 27.25% decline year-over-year (2021: $1.2bn).
Image: Shutterstock

Las Vegas Sands (LVS) has published its financial results for the first quarter of 2022, declaring a net revenue of $943m a 27.25% decline year-over-year (2021: $1.2bn).

However, the operator noted it is looking to continue to build its digital presence as well as the exploration of multiple opportunities, as LVS targets land-based opportunities across the US and in Asia.

Notably, LVS is about to begin a $1bn renovation project of Singapore’s Marina Bay Sands, while in Macau the Londoner is said to be “near completion”.

For Q1, the operator’s net loss during the quarter grew to $478m (Q1 2021: $280m), while adjusted EBITDA was down 121.81% to $110m (Q1 2021: $244m). 

Sands China’s revenue fell by 40.94% to $547m (Q1 2021: $771m), with the loss for SCL growing to $336m (Q1 2021: $213m).

Reflecting on the results, Robert Goldstein, Chair and CEO of LVS, underlined the group’s “confidence” in the long-term opportunity in Singapore after voicing hopes of a continued uptick in the recovery of both Singapore and Macao.

“Our results continue to reflect the pandemic’s impact. Travel restrictions continue to affect visitation and our financial results in both Macao and Singapore this quarter,” he commented.

“We did generate some positive EBITDA for the quarter in both markets. We remain confident in the eventual recovery in both Macao and Singapore.”

He added: “We continue to have great optimism about our ability to perform to pre-pandemic levels once visitation returns. You may know our company is divided primarily into three material areas, the most important being Asia, the portfolio in Macao and Singapore. 

“We remain confident we’ll return to strong positive cash flow in both Macao and Singapore in the future as restrictions are eased and travel and tourism recover.

“The sale of Las Vegas creates liquidity and optionality as we pursue additional large-scale, land-based destination resorts in the US and Asia.”

Regarding US retail casino opportunities, Goldstein notes that LVS is “in the hunt” for a New York casino license among other options.

He said: “Well, New York has been on our radar for a long time. We continue to be in the hunt there. I don’t want to get into specific boroughs, locations. But we remain interested. I think it’s a huge market for us. We’ve been very clear about that in the past. The process is quite a long way to go.”

Goldstein also stated that LVS would have an interest in “any place there’s very large-scale buildings that can create large EBITDA”. Texas and Florida were cited as regions that could produce a return on investment.

Digitally, “multiple opportunities” are being explored by LVS, but right now, the focus is on building rather than buying.

Future potential investments, said Patrick Dumont, President and Chief Operating Officer of LVS, could be in small companies that could have a competitive advantage, similar to its recent outlay in US Integrity.