Las Vegas Sands Q1 Results: Navigating Macao’s Headwinds with Singapore Strength and Strategic Capital Returns

Las Vegas Sands (NYSE: LVS) reported mixed first-quarter 2025 results, with net revenue declining 3.3% year-over-year to $2.86 billion and net income falling 30% to $408 million. While the numbers reflect challenges in its core Macao market, the company underscored its resilience through strong Singapore performance, robust capital returns, and long-term strategic investments. Here’s what investors need to know.

Regional Performance: Macao Struggles, Singapore Shines

Macao, which accounts for roughly 60% of Las Vegas Sands’ revenue, saw Adjusted Property EBITDA drop 12.3% to $535 million, driven by a 5.7% revenue decline. The casino giant attributed this to a “low hold on Rolling Play,” which cost $10 million in EBITDA, and weaker demand in high-stakes gaming. Key properties like The Venetian Macao faced significant headwinds, with Rolling Chip win percentages plunging to 2.18% (vs. 6.71% in 2024), while The Londoner Macao saw Rolling Chip volumes fall 9%.

Meanwhile, Singapore’s Marina Bay Sands (MBS) delivered a standout performance. Adjusted Property EBITDA rose 1.3% to $605 million, with margins expanding to 52% thanks to operational efficiency and new suite products. Hotel occupancy at MBS hit 98.1%, and RevPAR increased slightly, signaling strong demand. The MBS Expansion Project—funded by a $2.8 billion term loan and a $5.59 billion delayed draw facility—aims to solidify Singapore’s position as a luxury tourism hub.

Capital Allocation: Aggressive Buybacks and Dividend Discipline

Las Vegas Sands reinforced its commitment to shareholders by repurchasing $450 million of its stock in Q1 (10 million shares at an average price of $44.59). More importantly, the board boosted the remaining share repurchase authorization from $1.1 billion to $2.0 billion, signaling confidence in the company’s financial flexibility. With $3.04 billion in unrestricted cash and total debt of $13.71 billion, LVS retains ample liquidity to fund growth while returning capital.

The dividend remained stable at $0.25 per share, with the next payout set for May 14. CEO Robert Goldstein emphasized that the company’s “financial strength allows us to balance capital returns with strategic investments.”

Operational Metrics and Risks

Despite Macao’s struggles, Las Vegas Sands highlighted several positives:
- Hotel Performance: Occupancy surged at key Macao properties, including The Parisian Macao (99.8%) and The Plaza Macao (97.2%). RevPAR increased across most Macao hotels, indicating strong demand for non-gaming services.
- Balance Sheet: Unrestricted cash rose to $3.04 billion, up from $2.82 billion a year ago, supporting both growth and shareholder returns.

However, risks remain:
- Macao’s Softening Market: Declining Rolling Chip volumes and win rates could persist if high-stakes gamblers shift spending elsewhere.
- Regulatory Uncertainty: Macao’s gaming licenses are up for renewal in 2026, and any regulatory changes could impact operations.
- Currency Risks: Singapore dollar-denominated debt could pressure earnings if USD/SGD exchange rates shift unfavorably.

Investment Thesis

Las Vegas Sands’ Q1 results reveal a company navigating near-term Macao headwinds while capitalizing on Singapore’s dominance and shareholder-friendly policies. Key data points support a cautiously optimistic outlook:
- MBS Growth: Singapore’s Adjusted Property EBITDA margins expanded to 52%, outperforming Macao’s 31.3%. This underscores the strategic value of the MBS expansion.
- Share Repurchases: The $2.0 billion buyback authorization represents ~5% of LVS’s market cap, providing a floor for its stock price.
- Cash Flow Resilience: Despite the EBITDA decline, LVS maintained a strong cash balance, enabling it to weather Macao’s volatility.

Conclusion

Las Vegas Sands’ Q1 results are a tale of two markets: Macao’s current struggles contrasted with Singapore’s enduring strength. While the near-term outlook for Macao remains uncertain, the company’s diversified portfolio, robust balance sheet, and shareholder-friendly capital allocation make it a compelling long-term play. Investors should focus on execution of the MBS Expansion Project and signs of stabilization in Macao’s gaming demand.

The stock’s trailing P/E of 11.5x and forward P/E of 9.2x—well below its five-year average—suggest valuation support. However, persistent Macao underperformance or regulatory setbacks could test investor patience. For now, LVS appears positioned to outperform peers with a balanced mix of defensive cash flows and growth catalysts.

Final Takeaway: Las Vegas Sands is weathering Macao’s slowdown with Singapore’s resilience and disciplined capital returns. Investors seeking exposure to Asian tourism and gaming recovery should consider this underfollowed name, but remain cautious on near-term Macao risks.