Las Vegas Sands Corp. (LVS) announced a 4.3% year-on-year decline in net revenue for the third quarter of 2024, reporting a total of $2.68 billion, as the company contends with lower-than-expected performance at its key properties in Macao and Singapore. This drop was accompanied by a 21.4% decrease in net income, which fell to $353 million for the quarter.
The casino operator’s Q3 financial performance fell below analysts’ expectations. The company reported earnings of 44 cents per share, short of the 53 cents per share that analysts had predicted, according to LSEG data.
“In Macao, the ongoing recovery continued during the quarter, although visitation to the market remains below the levels reached prior to the pandemic,” said Robert Goldstein, Chairman and CEO of Las Vegas Sands, in the company’s earnings call.
A key factor impacting the company’s Q3 performance was the disruption caused by development work at the Londoner property in Macao. Despite this, Macao’s adjusted property EBITDA reached $585 million, a slight reduction of $2 million. Meanwhile, Singapore’s Marina Bay Sands posted an adjusted property EBITDA of $406 million but faced a more significant decline of $78 million due to a lower hold on rolling play.
Robert Goldstein
“Although our reported financial results for the quarter reflected lower-than-expected hold in Singapore and the impact of disruption from our ongoing development work at the Londoner in Macao, we continued to execute our strategic objectives during the quarter,” added Goldstein.
The company’s earnings for the first half of 2024 had been more positive, with Q2 revenue up 8.7% year-on-year at $2.76 billion, and a 15.2% increase in net income compared to the same period in 2023. However, Q3 marked a reversal, with total quarterly revenue declining by 4% from last year’s figures, falling short of the $2.78 billion projected by analysts.
Las Vegas Sands continued its capital investment strategy, spending $539 million in Q3 2024. Of this, $313 million was allocated to ongoing development in Macao, while $215 million was directed toward Marina Bay Sands in Singapore.
Additionally, the company maintained an active share repurchase program, buying back $450 million in stock during the third quarter. In a move to boost shareholder returns, the Board of Directors also authorized an additional $2 billion for future share repurchases. The company raised its annual dividend for 2025 to $1.00 per share, increasing the quarterly payout to $0.25 per share.
The company’s leadership expressed optimism that the completion of renovation work in Macao, coupled with an eventual recovery in the region’s tourism and gaming markets, would drive stronger financial performance. However, lingering impacts from the global economic slowdown, particularly in Macao and Singapore, continue to challenge the company’s immediate growth trajectory.
As of September 30, 2024, Las Vegas Sands reported $4.21 billion in unrestricted cash and access to an additional $4.47 billion through revolving credit facilities.