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Las Vegas Sands (LVS) Q3 Earnings call transcript Oct 23, 2024

Daily EarningsMonday, Oct 28, 2024 8:28 pm ET

1min read

LVS -- MASS --

The Las Vegas Sands Corporation (LVS) held its third-quarter 2024 earnings call, with executives providing insights into the company's performance and future growth strategies. The call, led by Chairman and CEO Rob Goldstein, featured updates on the company's operations in Macao and Singapore, as well as its plans for capital investments and return to shareholders.

Macao Market Outlook

The Macao market continues to show strong growth, with a 13% increase in revenue compared to the third quarter of 2023. The market's gross gaming revenues are expected to exceed $30 million in 2025, driven by the company's strategic investments in high-quality assets and its position as a market leader. The Londoner Grand asset, which opened in September, is expected to contribute significantly to the company's growth, with plans to introduce more Londoner Suites in the coming quarters.

Singapore Performance

In Singapore, the Marina Bay Sands (MBS) property delivered solid results despite facing disruptions related to capital investment programs. The company's EBITDA margin from the MBS portfolio, excluding the Londoner, stood at 35.1% for the quarter, down 110 basis points compared to the third quarter of 2023. The company remains optimistic about the future growth prospects of MBS, with plans to complete the balance of its investment programs in the first half of 2021, paving the way for further expansion.

Capital Investment Programs and Return to Shareholders

LVS repurchased $450 million of its LVS stock during the quarter and increased its repurchase authorization to $2 billion for future repurchases. The company also increased its quarterly dividend to $0.25 per share, reflecting its commitment to returning value to shareholders. The company's capital investment programs, including the Marina Bay Sands IR2 project, are expected to support future growth and generate industry-leading returns on invested capital.

Investor Questions

During the Q&A session, investors asked about the impact of promotional activity on gaming revenues, the outlook for the premium mass segment, and the regulatory landscape in Singapore. LVS executives provided detailed responses, highlighting their confidence in the company's strategic investments and market positioning. They emphasized the importance of maintaining cost discipline and focusing on high-value, high-margin tourism to drive future growth.

Conclusion

The Las Vegas Sands Corporation's third-quarter 2024 earnings call provided a comprehensive update on the company's operations and strategic initiatives. With a focus on high-quality assets, capital investment programs, and a strong commitment to returning value to shareholders, LVS is well-positioned for long-term growth in the dynamic gaming and hospitality industry.

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