Las Vegas Sands Corp. (NYSE:LVS) recently released its third-quarter 2023 results, outperforming the Zacks Consensus Estimate for both earnings and revenues. The company’s top and bottom lines experienced year-over-year growth, largely attributed to the recovery in travel and tourism spending in Macao and Singapore.
In Macao, Las Vegas Sands saw improvements in both the gaming and non-gaming segments. Singapore’s Marina Bay Sands also exhibited positive performance growth. The introduction of new suite products and enhanced service offerings positions the company well for growth as airlift capacity continues to improve alongside the recovery in travel and tourism spending.
Following the earnings announcement, the company’s stock surged by 4.8% during after-hours trading on October 18, indicating investor confidence in the company’s prospects. This enthusiasm can be attributed to the favorable trends in travel and tourism spending and the company’s commitment to strategic investments aimed at enhancing its appeal to both business and leisure tourists.
Q3 Earnings & Revenues
For the third quarter of 2023, Las Vegas Sands reported adjusted earnings per share (EPS) of 55 cents, surpassing the Zacks Consensus Estimate of 53 cents by 3.8%. In contrast, the company incurred an adjusted loss of 27 cents per share in the same quarter of the previous year. Interest expenses, net of amounts capitalized, amounted to $200 million, compared to $183 million in the prior-year quarter.
Quarterly revenues reached $2.8 billion, exceeding the consensus estimate of $2.69 billion by 4%. This represents a significant increase of 177.2% from the $1.01 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asian operations, including various resorts, experienced substantial growth in comparison to the prior-year quarter:
- The Venetian Macao: Net revenues of $723 million, up from $104 million in the prior year. This was driven by increased casino, rooms, and mall revenues.
- The Londoner Macao: Net revenues reached $518 million, compared to $57 million in the previous year, primarily due to higher revenues from casinos, rooms, malls, and food and beverage.
- The Parisian Macao: Net revenues of $244 million, up from $21 million, with improvements in casino, rooms, and food and beverage revenues.
- The Plaza Macao and Four Seasons Macao: Net revenues of $192 million, an increase from $57 million, driven by rising casino, rooms, and mall revenues.
- Sands Macao: Net revenues of $83 million, up from $11 million, mainly due to a surge in casino revenues.
- Marina Bay Sands, Singapore: Net revenues of $1.02 billion, an increase from $756 million, primarily driven by higher revenues from casinos, rooms, food and beverage, and malls.
Operating Results and Balance Sheet
On a consolidated basis, adjusted property EBITDA reached $1.12 billion in the third quarter of 2023, compared to $191 million in the year-ago quarter.
As of September 30, 2023, unrestricted cash balances stood at $5.57 billion, slightly down from $5.77 billion in the previous quarter. Total debt outstanding, excluding finance leases and financed purchases, was $14.17 billion, down from $14.7 billion in the earlier quarter.
In the third quarter, capital expenditures totaled $330 million, attributed to construction, development, and maintenance activities in Macao, Marina Bay Sands, and corporate development.
Featured Image: Unsplash
