Las Vegas Sands has disclosed its Q4 2023 financial results, revealing a quarterly revenue of $2.92 billion, marking a substantial 161 percent increase year-on-year. However, the figures still indicate a 16.9 percent decline from the pre-Covid levels recorded in Q4 2019.

Key points of Q4 report

Las Vegas Sands Q4 2023 Key Takeaways	Amount (in billions)
Net Revenue	$2.92
Net Income	$469
Consolidated Adjusted Property EBITDA	$1.20
Macao Adjusted Property EBITDA	$654
Impact of Low Hold on Rolling Play in Macao	-$40
Marina Bay Sands Adjusted Property EBITDA	$544
Impact of High Hold on Rolling Play at Marina Bay Sands	+$71
LVS Repurchased Company Stock	$505
LVS Acquiring SCL Stock	Approximately $250

A significant portion of the Q4 2023 revenue, amounting to $1.06 billion, originated from the operations of Marina Bay Sands in Singapore. This reflects a noteworthy 55.6 percent growth compared to the same period last year and a substantial 24.4 percent surge when contrasted with Q4 2019. This highlights the resilience and consistent development of business in Singapore, even though the overall recovery across all operations remains incomplete.

In contrast, the Macau operations continue to grapple with a revenue deficit compared to 2019. The collective revenue from the company’s five casino resorts and other ventures in Macau totalled $1.86 billion in Q4 2023, showcasing a substantial 319.6 percent increase from Q4 2022. However, it remains 16.9 percent below the Q4 2019 levels.

Macau main contribution

The Venetian Macau emerged as the primary contributor to Sands’ Macau operations, generating $748 million, followed by The Londoner Macau and The Parisian Macau, contributing $589 million and $222 million, respectively.

While the net revenue gap between 2019 and 2023 was 16.9 percent, the adjusted property EBITDA exhibited a relatively narrower difference. Q4 2023 saw an adjusted property EBITDA of $1.2 billion across all properties, compared to $1.39 billion in Q4 2019, reflecting a decrease of 13.7 percent. This suggests that adjusted property EBITDA might lead the way in recovering to pre-Covid levels ahead of net revenue.

Although Las Vegas Sands has not surpassed its 2019 figures, the positive growth observed in revenue from Singapore, coupled with the gradual narrowing of the Macau revenue gap from 2019, signifies a recovering gaming market in Asia. MGM China reported a revenue surpassing pre-Covid levels in Q3 2023, exceeding Q3 2019 figures by 10 percent.

Furthermore, the Gaming Inspection and Coordination Bureau of Macau reported a total revenue of MOP$183.1 billion (US$22.7 billion) in 2023, representing a remarkable 334 percent increase from 2022. Despite being 37.4 percent less than 2019, this trajectory suggests a promising trend, with revenue likely to reach or even exceed pre-Covid levels in the coming years.

Osaka and Mohegan Inspire resorts on track

The broader Asian gambling market also demonstrates robust growth, with the Philippine Amusement and Gaming Corporation (PAGCOR) reporting a record high revenue of Php285.27 billion ($5.09 billion) in 2023, indicating a substantial year-on-year growth of 33.1 percent.

Additionally, the recent developments, such as the establishment of the first Japanese casino resort in Osaka and the Mohegan Inspire receiving a five-star hotel rating, collectively point towards a bright future for the Asian gaming industry, even if the sector has not yet reached its optimal form.

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