Las Vegas Sands reports Q3 profit, obtains $2.5B credit line
Las Vegas Sands Corp. reported a profitable third quarter on Wednesday — though not as strong as a year ago — and said it will continue to invest heavily in its resorts in Macao and Singapore.
The Las Vegas-based company, which doesn’t operate any U.S. resorts, also announced in a Securities and Exchange Commission filing that it has secured a credit agreement of $2.51 billion, which is expected to be used to build and improve amenities in Macao.
The company reported net income of $353 million, or 38 cents a share, on revenue of $2.68 billion for the quarter that ended Sept. 30. That’s a 21.4 percent decline in income from the $449 million, 50 cents a share, on revenue of $2.8 billion reported in the third quarter of 2023. The company also is paying a 20-cent dividend to shareholders in November.
While revenue was down from a year ago, Macao is on an upswing and just reported a better-than-expected Golden Week holiday, prompting Sands executives to continue to invest in their two Asian destinations.
Sands is committed to a $3.4 billion renovation and refurbishment program in Macao that includes adding a garden-themed attraction to its Londoner property, upgrades to convention and entertainment amenities throughout the city, and new investments in food and beverage and health and wellness amenities.
In Singapore, the company recently invested $1.75 billion in its Marina Bay Sands property with room improvements and plans for a 15,000-seat arena and a new hotel tower.
New credit line
Sands’ new credit facility, explained in an SEC filing, could be drawn on through Sept. 24, 2029. The filing also indicated the new line of credit could be used to pay down other debt.
In late 2022, Sands committed to investing $3.5 billion in non-gaming amenities in Macao as part of the process to renew licensing in the Chinese gambling enclave.
While the company’s focus is on Macao and Singapore, investors asked executives whether there was any interest in joining rivals Wynn Resorts Ltd. and MGM Resorts International in developing a resort in the United Arab Emirates.
Sands President and Chief Operating Officer Patrick Dumont made no commitment to pursuing a resort, but he indicated the company is always looking.
“I think we’re always looking at new investment opportunities for Las Vegas Sands,” Dumont said. “I think it’s a market that we’ll continue to study and look at, and we’ll see how it goes.”
New York bid
Sands CEO Rob Goldstein said delays in the awarding of a gaming license for downstate New York have kept the company in a holding pattern there and that recent reports about the upswing of revenue from online gambling may change the whole environment there.
“We remain interested in the process,” Goldstein said of his company’s New York bid.
Sands hopes to develop a Long Island parcel formerly used for the New York Islanders hockey arena into an integrated resort with a casino.
Empire State lawmakers and regulators initially had plans to award three new licenses in New York this year. Goldstein said Wednesday it doesn’t appear the state would conclude the application process until spring 2025. In the meantime, online gaming revenue has overtaken land-based revenue in New Jersey, and iGaming play continues to trend upward. That could have an influence on any New York gaming license applicant’s capital investment.
“The only concern I have these days is the ongoing strength of online gambling, which you can’t ignore what’s happening in New Jersey and in Pennsylvania and in Michigan,” he said.
The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Las Vegas Sands President and COO Patrick Dumont.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.
