Las Vegas Sands Eyes Continued Growth in Macao as 2023 Revenue Soars
Date: 2024-02-14 Author: Dima Zakharov Categories: EVENTS
Macao's Phenomenal Growth
Las Vegas Sands achieved outstanding growth in both Macao and Singapore in 2023, with Macao taking the lead. Macao's revenue skyrocketed by an impressive 303.1%, reaching $6.56 billion. This surge was largely attributed to the removal of Covid-19 restrictions, allowing players unrestricted access to casinos.
Future Outlook in Macao
CEO and Chairman Rob Goldstein expressed confidence in Macao's future growth potential, citing forecasts that estimate the market's value could surpass $40 billion. He highlighted the company's substantial investments, including the $1.20 billion reinvestment program at its Londoner site in Macao, as a driving force behind this growth.
Revenue Breakdown
Breaking down the revenue, gaming operations contributed the most, totaling $7.52 billion. Accommodation, food and beverage, mall, and convention retail and other also contributed significantly. Macao's Venetian Macao and the Londoner were standout venues, experiencing remarkable revenue hikes of 293.3% and 412.0% respectively.
Singapore's Growth
In Singapore, revenue increased by 53.0% to $3.95 billion, solely attributed to the Marina Bay Sands venue. Additionally, Sands reported $224.0 million in inter-company royalties for the year.
Profit and Expenses
Despite impressive revenue growth, total operating expenses rose by 64.4% due to increased resort operation costs in Macao. Sands also noted interest expenses but managed to achieve a pre-tax profit of $1.78 billion. After paying $344 million in taxes, the net profit amounted to $1.43 billion.
Year-On-Year Comparison
However, year-on-year comparisons showed a slight decrease in net profit, partly due to factors like the absence of gains from discontinued operations seen in 2022. Nevertheless, adjusted property EBITDA for the year soared by 458.1% to $4.09 billion.
Q4 Performance
The fourth quarter of 2023 followed a similar pattern, with revenue increasing by 161.0% to $2.92 billion. Macao's revenue surged by 319.6% to $1.86 billion, while Singapore's revenue rose by 55.6% to $1.06 billion.
Continued Enthusiasm
CEO Rob Goldstein expressed satisfaction with the quarterly results and remains enthusiastic about the growth opportunities in both Macao and Singapore in the coming years. Las Vegas Sands is poised for further success in these key markets.
