LVS Celebrates Strong Recovery in Macau as Revenue Hits $1bn in Q1
Summary:
- Las Vegas Sands’ mass gaming revenue in Macau reached $1bn for the first time in four years
- Strong results for Q1 are brought about by a powerful recovery in travel and tourism in Asia
- Macau is still in its early stages in terms of recovery, with more growth expected in the coming months
Las Vegas Sands’ Asian operations are beginning to bounce back following the pandemic and junket closing, with the company’s Q1 results reflecting a strong recovery in both Macau and Singapore.
Macau’s performance in particular exceeded expectations, as the operator’s mass-gaming revenue hit $1 billion for the first three months of 2023, on a par with 2019’s figures.
Las Vegas Sands Enjoys Impressive Q1 Results in Macau
During their recent conference call with Wall Street analysts, Las Vegas Sands Chairman and CEO Rob Goldstein stated that recovery in both gaming and non-gaming segments in Macau has accelerated during the first quarter of the year.
From January to March 2023, the company’s Sands China Ltd (SCL) unit, which operates multiple gaming properties in Macau, generated $1.27 billion in revenue, more than double the $547 million recorded during the same period in 2022 despite Moody predicting revenues won’t return till 2024.
SCL also managed to significantly bring its net losses down to just $10 million from $336 million in Q1 of 2022. The company’s adjusted earnings reached $398 million during the first three months of the year.
Las Vegas Sands attributes its positive Q1 results in Macau to a robust recovery in travel and tourism, as the government focuses on attracting more international visitors to the region. Goldstein said they will continue their investments to maximize Macau’s tourism potential and further speed up recovery in the months ahead.
Las Vegas Sands also fared exceptionally well in Singapore during Q1 of 2023. Marina Bay Sands, the other half of the gaming duopoly in the city-state, generated $549 million in mass gaming revenue, a record high for the property, with adjusted earnings sitting at $394 million.
Combining the Q1 results in Macau and Singapore, Las Vegas Sands generated $2.12 billion in total mass gaming revenue from January to March, significantly higher than the $943 million it recorded during Q1 of 2022. The company had consolidated adjusted earnings of $792 million, up from $100 million during the same period last year.
Macau Recovery Still in Its Infancy
Macau’s gross gaming revenue (GGR) for March represents its biggest monthly GGR since January 2020 and there’s no way to go but up for the special administrative region. Goldstein acknowledged that there’s an ongoing “powerful recovery” in Macau but the region is still in its infancy in terms of bouncing back.
Looking at the growth patterns, Goldstein believes Sands China is well-positioned for more growth in the coming years, with the company boosting its investments in its non-gaming offerings to drive more tourists to the region, especially overseas visitors.
Carolyn DuttonAuthor
Carolyn is our legislation expert, with a background in law she is able to cover the current state of gambling around the world
