Las Vegas Sands Corporation Reports Stable Financial Performance in 2022

The Las Vegas Sands Corporation’s financial performance for the 2022 fiscal year and fourth quarter remained stable.

The corporation’s total income for the year was $1.12 billion (£937.9 million/€1.05 billion). Although fourth-quarter income dropped slightly to $279.7 million, down from $281.9 million in 2021, it still increased slightly by 2.3% compared to 2021.

Robert Goldstein, Chairman and Chief Executive Officer of Las Vegas Sands, stated that the results were still above pre-pandemic levels.

“Our fourth-quarter results show strong financial performance, remaining well above 2019 levels, while higher labor and other costs affected comparisons to last year’s fourth-quarter results,” he said.

“For the second consecutive year, our annual total income exceeded $1 billion, and our operational discipline continues to support the significant margin improvements we have achieved, resulting in adjusted EBITDA for the full year that was 45% higher than 2019.”

In the fourth quarter, Las Vegas Sands paid down $25 million of outstanding term loans and repurchased $2 million of senior unsecured notes.

The company also repurchased over 1.1 million shares of common stock for the year and over 300,000 shares of common stock in the fourth quarter.

Fourth Quarter
Total income declined by 0.

During the final three months of 2022, earnings rose by 8%.

Food and drink earnings and other earnings stayed mostly the same compared to the last quarter of 2021. Food and drink earnings were $45.4 million, up 1.3%, while other earnings climbed by $246,000 to $16.6 million.

However, gambling earnings dropped 3.2% in the quarter to $185 million, while room profits rose 10.3% to $32.6 million.

Total costs decreased by 1.2% year-on-year to $244.2 million. The largest cost was gambling expense at $105.5 million, followed by sales, general, and administrative expenses at $57.8 million.

After subtracting total costs, operating income reached $35.4 million, an increase of 2.7%.

Additional non-operating costs, including $17.9 million in interest expense and $178,000 in debt write-off losses, resulted in pre-tax income of $17.3 million.

After subtracting $6.2 million in income taxes, net income was $11.1 million, down 42.1% year-on-year.

Adjusted EBITDA fell to $63.7 million in 2022, compared to $67.8 million in the final quarter of 2021.

Full-Year Performance

Looking at the full-year report, gambling revenue was $766.3 million, down 0.7%. Food and drink revenue rose by 4.5% to $175.3 million. However, room revenue was $122.3 million, up 11.4%, and other revenue increased by 20.0% to $62.1 million.

Full-year net income was $82.2 million, almost half of Golden Entertainment’s full-year net income in 2021.

The operator’s total expenses for the year increased by 4.6% to $973.7 million.

Following the subtraction of costs, earnings reached $147.9 million, exhibiting a 10.9% decline compared to the previous year.

Costs encompassed $60 million in similar figures, although the complete figures for the entire year of 2022 have not been made public. Golden Entertainment clarified that the $60 million represented “income associated with the Caesars Entertainment acquisition of William Hill.”

Modified earnings before interest, taxes, depreciation, and amortization (EBITDA) for the complete year 2022 amounted to $267.1 million, showcasing a reduction of 8.4% from the $291.7 million recorded for the entire year 2021.

**Future Prospects**

Sartini presented several key predictions for the year 2023, including expansion in Las Vegas and the finalized sale of the Rocky Gap Casino Resort.

“We are enthusiastic about the business trends we are observing this year, and we anticipate utilizing the strength of Las Vegas in 2023 and beyond,” stated Sartini.

“We anticipate the sale of Rocky Gap Casino Resort to finalize in the second quarter of 2023, which will generate substantial liquidity that, in conjunction with our free cash flow, will empower us to maintain a low debt ratio, invest in our owned properties, and expedite capital returns to investors.”

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