Operator News
US – Sands big ups Las Vegas’ bounce back as well as Texas and New York opportunities
By Phil - 29 January 2021
Whilst delivering better than expected fourth quarter results, the new management team at Las Vegas Sands was keen to highlight Las Vegas’ ability to bounce back from the pandemic as well as potential new opportunities in New York and Texas.
The operator fared slightly better than expected in the last quarter of 2020 with net revenue coming in at $1.15bn, a decrease of 67.3 per cent from the prior year quarter.
Operating loss was $211m, compared to operating income of $934m in the prior year quarter. Net loss in the fourth quarter of 2020 was $376m, compared to net income of $783m in the fourth quarter of 2019. Consolidated adjusted property EBITDA was $141m, compared to $1.39bn in the prior year quarter. Full year 2020 operating loss was $1.69bn, compared to operating income of $3.70bn in 2019. Net loss attributable to Las Vegas Sands was $1.69bn in 2020, compared to net income of $2.70bn in 2019.
Sands was keen to highlight the robust nature of its solitary domestic market; Las Vegas, as well as mapping out the potential for future domestic investments.
Patrick Dumont, President and Chief Operating Officer, said: “We have a very positive view in Las Vegas. I think long term, it’s irreplaceable in terms of a tourist destination. A huge amount of investment is going into Las Vegas. We think there’s a huge amount of potential pent-up demand just looking at other markets when there’s been a return. And really, the restrictions in Las Vegas now are based on the capacity constraints set by the government. On weekends, we’re actually doing quite well. There are days where we’re actually almost at 2019 slot levels.”
Mr. Goldstein added: “There’s been recent commentary on the return of Las Vegas saying Las Vegas will never return to pre-pandemic levels. The best days are behind it. I’ve heard all of this before over the last 20, 30 years. We believe Las Vegas has plenty of gas in the tank. Our demand for 2022 through 2027 convention is unbelievable. Our customers want to come, and we remain very bullish on the return of Las Vegas. It may take longer than we want it to. It may take till the end of this year, as we see a visitation spike. But please don’t be among those people who have these ideas that this pandemic would put a hole in Las Vegas. And just the opposite, the demand will be there. This is a unique town. We’re going to have all the digital products out there you want. People want the visitation, and this town has a lot to offer. So we remain very bullish on the return post-pandemic.”
In terms of new marker opportunity in New York or Texas, Mr. Goldstein said: “We’re big believers in New York. We think it’s extraordinary with the density of population. A good product there will be extraordinary. So we’re definitely in the hunt. We’ve been pushing for it again for four or five years. We’re excited by what came out of the New York group last week in terms of what they’re considering. It’s still a long way to go before we understand where they want to build and what they want to build but if it’s real and it’s done properly, we think the returns could be Sheldon like.
“On Texas, we’re kicking the tires down there too due to the size and scale. We’re having conversations and we will advise you when something emerges that affects us. It would be a great casino market for a land-based store. These are opportunities that we – with our balance sheet and strength, we would jumped with both feet. It was the right structure,” he added.
Sands China’s revenues decreased 69.9 per cent, compared to the fourth quarter of 2019, to $672m. Net loss was $246m, compared to net income of $513min the fourth quarter of 2019.
The company continues to mourn the loss of its visionary founder, Mr. Sheldon G. Adelson, today reported financial results for the quarter ended December 31, 2020.
“Mr. Adelson’s vision and leadership created Las Vegas Sands and the convention-based Integrated Resort business model that forms the bedrock of the company’s success,” said Mr. Robert G. Goldstein, Chairman and Chief Executive Officer. “His impact will live on through the company’s 50,000 team members and the iconic properties he developed around the world. These last few weeks since Sheldon’s passing have been difficult for all of us, but his commitment to investing aggressively to build iconic resorts that deliver economic benefits to our host communities, the core of the company’s operating strategy, remains firmly in place. I am deeply committed to continuing the execution of the strategy he created, and confident that we will deliver growth in the years ahead while honoring his legacy and realizing his vision for the creation of additional Integrated Resorts in new markets.”
“Mr. Adelson established the roadmap for the future of this company, and that roadmap remains unchanged,” said Patrick Dumont, President and Chief Operating Officer. “I am dedicated to working with Rob and our leadership team to make our strategic objectives a reality. Our path forward is clear and remains true to the principles our founder was committed to for so many years – we will continue supporting our people and the local communities in which we operate, reinvesting in our current markets, producing strong returns for our shareholders and aggressively pursuing new development opportunities.”
“Turning to our financial results, I am pleased to share that the recovery process from the Covid-19 pandemic continues to progress in both Macao and Singapore” said Mr. Goldstein. “Our greatest priority as the recovery continues remains our deep commitment to supporting our team members and to helping those in need in each of our local communities of Macao, Singapore and Las Vegas.”
“We remain optimistic about the eventual recovery of travel and tourism spending across our markets. We are fortunate that our financial strength supports our previously announced capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets.”
