The eminent developer and operator of world-class Integrated Resort, Las Vegas Sands Corp., reported its financial results for the first quarter of 2023 today. The report stated that the recovery of the company’s Singapore, Macao, and China resorts is underway as these operations reached a total of $3.39 billion in revenues in Q1 2023 in comparison to the $1.49 billion seen over the same period last year.
Robert G. Goldstein, chairman, and chief executive officer of Las Vegas Sands, said: “While travel restrictions and reduced visitation continued to impact our financial performance during the quarter, a robust recovery in travel and tourism spending across our markets is now underway. We remain enthusiastic about the opportunity to welcome more guests back to our properties throughout 2023 and in the years ahead.”
Marina Bay Sands – Ongoing Recovery:
Goldstein continued: “In Singapore, we were pleased to see the ongoing recovery at Marina Bay Sands progress during the quarter, with the property again delivering outstanding levels of performance in both mass gaming and tenant sales. We remain energized by the opportunity to introduce our new suite product to more customers as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues.”
Macao Accelerates With Increased Visits:
According to Goldstein, Macao operations exercised a great performance in the quarter as well: “In Macao, we were pleased to see the ongoing recovery now underway in all gaming and non-gaming segments accelerate during the quarter. We remain deeply enthusiastic about the opportunity to continue our investments to enhance Macao’s tourism appeal to travelers from throughout the region, including foreign visitors to Macao,” said the chairman and added:
”Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world center of business and leisure tourism positions us exceedingly well to deliver strong growth as visitation to the market increases and the recovery in travel and tourism spending proceeds.”
Resolute Commitment to Leading Investments:
Goldstein is enthusiastic about the future prospects of the company. “Looking ahead, our resolute commitment to making industry-leading investments in our team members, our communities and our market-leading Integrated Resort property portfolio positions us exceptionally well to deliver strong growth in the years ahead. Our financial strength supports our ongoing investment and capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets,” he said.
Q1 2023 Singapore and Macao Financial Results:
The optimism of the Las Vegas Sands executives is based on the latest financial results showing that the company generated net revenue of $2.12 billion in these markets in Q1 2023, which is more than double the $943 million level it experienced in the first quarter last year. Consequently, the operating income amounted to $378 million against the operating loss of $302 million sustained on a year-over-year basis.
Such significant growth caused an increased net income from continuing operations of $145 million in Q1 2023 after the respective $478 million net loss faced in the same period last year. Consolidated property adjusted to EBITDA amounted to $792 million which is more than seven times the $110 million level seen in the first quarter of last year.
Q1 2023 Sands China Financial Results:
The Sands China results follow the pattern set by the company’s Macao and Singapore facilities and saw total net revenues soaring to $1.27 billion in the first quarter of 2023 to double the $547 million level from the same quarter last year here as well. As the company reported, Sands China Resort has also been underway to recovery but still feels the impact of the last year’s closures. Therefore the resort recorded a slight net loss of $10 million, compared to $336 million lost in the first quarter of 2022.
Q1 2023 Total:
Now that the company reported its financial results across its Singapore, Macao, and China resorts, it is shown that these facilities together made a total of $3.39 billion in revenue which is more than double the $1.49 mark reached in the same period last year. Factors affecting the level of earnings included interest expense of $218 million, the weighted borrowing cost of 5.4 %, and the weighted average debt balance that increased due to borrowings of $999 million under the last year’s credit line. However, the company still has $2.48 billion available for borrowing under several credit facilities.
In the first quarter of 2023, Las Vegas Sands contributed $50 million in taxes, compared to the $2 million contribution from Q1 2022. As of March 31, 2023, the company’s unrestricted cash balances amounted to $6.53 billion, while the total outstanding debt was $15.97 billion. As for capital expenditures in the quarter, the developer invested $166 million across its facilities to use the momentum and capitalize on the market recovery.