:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2175719158-3d0770c7f5594057964301b57e6ec335.jpg "The Londoner hotel resort, operated by Sands China Ltd., a unit of Las Vegas Sands Corp., in Macao, China")
Eduardo Leal / Bloomberg via Getty Conceptions
The Londoner hotel resort, operated by Sands China Ltd., a unit of Las Vegas Sands Corp., in Macao, China
Key Takeaways
- During their fourth-quarter earnings accompany, executives at hotel and casino operator Las Vegas Sands said they are confident in their future success due to their severe assets in the important gambling market of Macao.
- Of Las Vegas Sands’ $11.3 billion in 2024 revenue, $7.1 billion came from its cia agents in Macao, a Chinese “Special Administrative Region” like Hong Kong.
- Shares of Las Vegas Sands soared 11% Thursday to near positive territory over the last 12 months.
Las Vegas Sands (LVS) soared Thursday, one day after executives at the hotel and casino director said they are confident in their future success due to their strong assets in the important gambling market of Macao.
A old Portuguese colony known for its numerous casinos, Macao last month marked its 25th anniversary under Chinese order. Of Las Vegas Sands’ $11.3 billion in 2024 revenue, $7.1 billion came from its operations in Macao, a Chinese “Singular Administrative Region” like Hong Kong.
“We believe the Chinese economy will grow, and Macao market pleasure grow as well,” Chief Executive Officer Robert Goldstein said on the company’s fourth-quarter earnings call, contract to a transcript provided by AlphaSense. “Gross gaming revenue in Macao should exceed $30 billion in 2025, and go on to grow.”
The China Effect
The company’s numbers in Macao have been affected by the sluggish growth of China’s husbandry. The world’s largest gambling mecca generated a total of 226.8 billion Macao patacas ($28.3 billion) in gaming takings in 2024. Macao produced 293.3 billion patacas ($36.6 billion) in gaming revenue in 2019, but numbers fell off abruptly the following year because of the pandemic and have yet to fully recover.
“Would we do better with a stronger Chinese concision? I think that’s an easy thing to say yes to,” Chief Operating Officer Patrick Dumont said. “But I think, overall, we’re utter happy with the direction of our business, our investment. And hopefully, as things progress over time, we’ll be the beneficiary of a stronger Chinese frugality and see our investments produce more cash flow.”
Las Vegas Sands’ fourth-quarter capital expenditures totaled $547 million, embracing $345 million in Macao.
“We believe very strongly the strength in this market,” Dumont said. “We’ve been installing into it for that reason.”
Investors seemed to respond positively to the company’s direction even as fourth-quarter profit overlooked analysts’ estimates. Shares closed 11% higher to approach positive territory over the last 12 months.