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US – Sands tops out its EBIDTA as revenue remains well down

By - 23 April 2021

Las Vegas Sands beat analyst consensus on EBIDTA as it delivered net revenue of $1.2bn, a decrease of 15.6 per cent from the prior year quarter, for the quarter ended March 31, 2021.

“We couldn’t be more enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macao, Singapore and Las Vegas,” said Robert G. Goldstein, chairman and chief executive officer. “We also remain deeply committed to supporting our team members and to helping those in need in each of our local communities as they recover from the impact of the COVID-19 pandemic.”

“We remain confident in the eventual recovery in travel and tourism spending across our markets. Demand for our offerings from our customers who have been able to visit remains robust, but pandemic-related travel restrictions, particularly in Macao and Singapore, continue to limit visitation and hinder our current financial performance.”

“Our industry-leading investments in our team members, our communities, and our market-leading Integrated Resort offerings position us exceedingly well to deliver growth as these travel restrictions eventually subside and the recovery comes to fruition. We are fortunate that our financial strength supports our investment and capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets.”

Operating loss was $96m, compared to operating income of $6min the prior year quarter. Net loss from continuing operations in the first quarter of 2021 was $280m, compared to $92m in the first quarter of 2020. Consolidated adjusted property EBITDA was $244m, compared to $349m in the prior year quarter.

In March 2021, LVS entered into definitive agreements to sell its Las Vegas real property and operations for an aggregate purchase price of approximately $6.25 billion and anticipates the transaction to close in the fourth quarter of 2021. The financial position, results of operations and cash flows of the Las Vegas Operating Properties have been presented as a discontinued operation held for sale.

On a GAAP basis, total net revenues for Sands China decreased 4.6 per cent, compared to the first quarter of 2020, to $771m. Net loss for Sands China was $213m, compared to $166m in the first quarter of 2020.

Bank of America has remained cautious on Las Vegas Sands. Analyst Shaun Kelly: “Macau improved on a sequential basis as expected, driven largely by March. Hold-adj. Macau EBITDA was $75M, slightly below our/Street’s $86m/$94m. The environment has improved from last quarter driven largely by premium mass with some early signs of life in base/grind mass. However, key barriers and visibility around visa issuance/testing remain unchanged. LVS noted improvements in March/April, but indicated the recovery is likely more gradual and that investors may be disappointed waiting for a specific inflection point.”

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