Las Vegas Sands exceeded earnings forecasts, driven by a strong recovery in Macau and record-breaking results from its Marina Bay Sands resort in Singapore.
In its latest financial disclosure, the company reported that Marina Bay Sands generated $492 million in income — a nearly 38% increase from 2016 — fueled by higher VIP hold rates, solid mass gaming activity, and strong non-gaming revenue.
In Macau, mass market gambling and rising visitation led the rebound. Non-VIP gaming surged nearly 23%, while premium mass revenues climbed almost 40%.
The company announced earnings of $0.73 per share and repurchased $75 million in common stock during the quarter. “I remain as confident as I’ve ever been in our company’s prospects,” said majority owner Sheldon Adelson.
Macau Uncertainty Looms
Sands shares rose 1.5% Thursday morning following the report, extending a three-month gain of nearly 19%. Still, investors remain cautious amid uncertainty surrounding Macau’s VIP sector.
Concerns persist over Beijing’s continued scrutiny of high-roller activity. Suncity Group, the largest VIP junket operator, recently advised staff to be cautious when transporting clients from Mainland China, as authorities maintain restrictions on proxy betting, ATM withdrawals, and facial recognition systems at gaming venues.
Future performance in Macau will depend heavily on whether China continues to suppress VIP operations.
Mixed Results in Las Vegas
While the company’s Asia properties thrived, results in Las Vegas were less impressive. Revenue from The Venetian and Palazzo rose 7.9% year-over-year but still missed Wall Street expectations. Slot machine revenue dropped 8.5%, and hotel occupancy fell 2.3%.
“This quarter was disappointing in terms of the lodging component,” said COO Rob Goldstein. “The summer looks better and business is picking up considerably.”
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