Las Vegas Sands Reports $1 Billion Loss in Second Quarter

The Las Vegas Sands corporation reported a net deficit of $1.04 billion (£876.3 million/€1.02 billion) in the second trimester, a decline from the same timeframe last year, as the persistent COVID-19 pandemic continued to affect its overall performance.

The company’s Singapore operations, however, performed admirably, with revenue at Marina Bay Sands increasing twofold year-over-year.

This is the first financial report since Las Vegas Sands divested its US operations for $6.25 billion.

Robert Goldstein, the chief executive officer of Las Vegas Sands, stated that the Singapore performance was a positive factor contributing to the company’s overall recovery.

“Although COVID-related limitations continued to influence our financial performance this quarter, we are pleased to observe the recovery in Singapore gaining momentum this quarter, with Marina Bay Sands’ adjusted property earnings before interest, taxes, depreciation, and amortization reaching $319 million,” Goldstein stated.

“We are confident in the rebound of travel and tourism expenditures in our markets. Demand for our products remains robust among those who are able to visit, while COVID-related travel restrictions continue to restrict visitation, hindering our present financial performance.”

The firms Macau ventures, which encompass the Londoner, Venetian, Parisian, and Sands Cotai Central, produced a total income of $374 million, a reduction of 56.2% compared to the same period last year.

All operators experienced a decrease in income this quarter. The majority of the income originated from the Venetian Macau, totaling $150 million, a decline of 61.6% from the second quarter of 2021. The Londoner Macau, the Plaza Macau, and the Four Seasons Macau generated $79 million, $58.2%, and 36.8% decrease respectively.

The Parisian Macau, Sands Cotai Central, ferry operations, and other income accounted for the remaining $66 million of Macau income.

At present, all gambling establishments in Macau are closed as the region continues to struggle with the COVID-19 pandemic.

They are scheduled to resume operations on July 23.

In contrast, Marina Bay Sands generated $679 million in income, more than double that of the second quarter of 2021.

This was primarily driven by the property’s gambling income, which increased by 124.2% year-on-year. Food and beverage income also doubled to $48 million, while meeting, retail, and other income more than doubled to $20 million.

The remaining income included $28 million in intercompany royalties and a $36 million loss from intersegment eliminations.

Total capital expenditure for all three properties amounted to $198 million. This included construction, development, and upkeep. Marina Bay Sands had a capital expenditure of $97 million, Macau had $67 million, and corporate and other areas had $34 million.

Macaus operations reported a $110 million loss in earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second quarter. In contrast, Marina Bay Sands generated $319 million in the same period.

Total income declined by 10.9% from the second quarter of 2021. Income was primarily driven by gaming income, totaling $709 million, down 14.1% year-over-year. Mall income came in second, remaining unchanged year-over-year at $148 million. Room income decreased to $97 million from $115 million last year, while food and beverage income rose by $13 million to $63 million. Convention, retail, and other income grew 64.7% to $28 million.

Operational expenditures resulted in a $147 million loss.

Total expenditures for the quarter amounted to $1.19 billion, down 9.1%. Resort operations were the highest expense area, accounting for $842 million of total costs, although down 9.6% year-over-year. Depreciation and amortization costs were $256 million, while corporate, pre-opening, development expenses, and leasehold amortization made up the remaining costs.

After $14 million in interest income, $162 million in interest expense, and $9 million in other expenses, the loss from continuing operations was $304 million, an increase of $18 million from the second quarter of 2021.

After considering $110 million in income taxes, the total net loss for the quarter was $414 million, up 47.8% year-over-year.

To date, income is $1.98 billion, down 16% from the first half of 2021.

To date, operational expenditures are $2.43 billion, resulting in a total operating loss of $449 million.

The firms total operational deficit hit $780 million, and after subtracting $112 million in accumulated income taxes, the net loss for the current period was $892 million, a rise of 59.2% compared to the same period last year.

Last week, Las Vegas Sands provided a $1 billion credit to its subsidiary Sands China, which is due on July 11, 2028.

Las Vegas Sands stated the loan was to back “the group’s operational funds and general corporate purposes.”

Sign up for the iGaming news newsletter.