Las Vegas Sands Reports Q2 2023 Earnings
Las Vegas Sands Corp., the U.S.-based global developer of casino resorts, has reported a robust performance for the second quarter of 2023. That’s according to its latest financial results, posted this week.
The company’s financials reveal a net revenue of $2.54 billion, with $537 million in operating income for the quarter. Both figures are well up on Q2 2023
Despite the name, the U..S based operator doesn’t currently own any casinos in Las Vegas or elsewhere in the States. Its current casino resorts are all in Asia, in the Chinese special administrative region of Macau and in Singapore.
Its current most profitable ventures are its distinctive Marina Bay Sands in Singapore (pictured) and the Venetian Macau.
Vegas to Macau
A significant contributor to the company’s Q2 financials was its operations in Macau, which posted a net revenue of $1.62 billion. This figure, however, is still below the pre-pandemic levels, indicating that the company’s Macau operations are yet to reach full recovery.
“We were pleased to see the robust recovery in travel and tourism spending underway in both Macao and Singapore progress during the quarter,” said Robert G. Goldstein, chairman and chief executive officer of Las Vegas Sands.
“We remain enthusiastic about the opportunity to welcome more guests back to our properties throughout the remainder of 2023 and in the years ahead.”
After adjusting for nonrecurring costs, Las Vegas Sands’ shareholders earnings per share rose to 46 cents, surpassing Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research earlier this year was for earnings of 45 cents per share.
The COVID-19 pandemic had a significant impact on the company’s operations, with its properties in Las Vegas and Macau experiencing closures and restrictions.
Las Vegas has bounced back with record-breaking numbers in the past two years. However, Sands was not in a position to profit, having sold the Venetian Las Vegas and the Palazzo to VICI Properties in 2021, shortly after the death of founder Sheldon Adelson.
Asian gambling destinations, meanwhile, have shown sluggish recovery from their more protracted pandemic restrictions, which saw Sands post an operating loss in Q2 2022. This year’s return to profitability will be welcomed news.
“Our team members across the globe have demonstrated remarkable resilience and commitment, and we could not be more proud of the way they have responded to these challenges,” Goldstein added.
Although it has divested itself of U.S. interests previously, Sands’ newly restored finances will boost its bid to return to the U.S. market with a planned casino resort in Nassau County, Long Island, New York.
It also continues to campaign for legal gambling in Texas, a cause late founder Sheldon Adelson was particularly keen on.
Unrestricted Cash Balance
Looking ahead, Las Vegas Sands Corp. is focusing on investing in new opportunities and driving growth.
It continued with upgrades, maintenance, and new projects at its Asian resorts throughout the quarter, with some $196 million spent in that time.
The report also claims an unrestricted cash balance of $5.77 billion as of June 30, 2023.
Las Vegas Sands is one of the biggest gambling operators in the world, placing around 1200th on the 2023 Forbes 2000 list of the world’s biggest companies. Of U.S.-based casino operators, only MGM International placed higher at 596th.
Sands’ owner Dr. Miriam Adelson, widow of the late Sheldon, is the 35th-richest person in the world (also according to Forbes) with an estimated $35 billion personal fortune.