LAS VEGAS SANDS CORP Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Macao Focus: Market growth expected, assets give strong advantage. Investing in high-quality, scalable assets. Londoner Grand Casino opening and ramp-up. EBITDA margin discussion for Macao properties, impact of room inventory on margins.
• Singapore Focus: Strong quarter for MBS, positive impact of capital investment, growing appeal of Singapore as a destination. Substantial completion of $1.75 billion reinvestment program at MBS by May 2025.
• Capital Return: Repurchased 450 million LVS stock and purchased ~250 million Sands China stock, increasing LVS equity interest in Sands China to ~72.3%. Annual dividend increased to $1 per share for 2025.

Segment Performance

• Macao: Gaming revenue in Macao grew 6% in Q4 2024 vs Q4 2023. Mass gaming revenue grew 5% y-o-y. Gross gaming revenue expected to exceed $30 billion in 2025. EBITDA for Macao was solid despite 20% fewer rooms available in Cotai. Londoner Grand Casino opened in Sept 2024, with 315 suites during Q4, aiming for 1500 suites/905 rooms by May 2025. SCL leads market in gaming, nongaming revenue, and EBITDA market share.
• Singapore: Adjusted property EBITDA was $537 million. Mass gaming revenue reached $746 million, up 71% from Q4 2019 and 28% q-o-q. Marina Bay Sands (MBS) EBITDA $537 million, with strong results from capital investment and high value tourism.

Guidance

• Macao gross gaming revenue expected to exceed $30 billion in 2025 and continue growing.
• Singapore to see growth as MBS investment programs complete and asset matures.
• Expect margin improvement in Macao as revenues grow and costs are managed.

Risks

• Impact of iGaming competition on potential New York casino license.
• Disruption in Macao market due to events like the 25th anniversary of Macao's reunification, affecting EBITDA.
• Competition in Macao influencing promotional activities.

Question and Answer

Q: Carlo Santarelli from Deutsche Bank asks about valuation of Sands China stock and impact of dividend increase, and MBS growth.

A: Patrick Dumont talks about belief in SCL story and active capital allocation, Robert Goldstein mentions MBS growth is ongoing, not one-time.

Q: Unidentified Analyst asks about Chinese consumer and New York license.

A: Patrick Dumont and Robert Goldstein discuss Chinese consumer market impact and concerns about iGaming in New York.

Q: Shaun Kelley from Bank of America asks about Londoner ramp-up.

A: Patrick Dumont and Grant Chum discuss Londoner room inventory ramp and EBITDA impact.

Q: Brandt Montour from Barclays asks about Londoner casino floor activation and Thailand opportunity.

A: Robert Goldstein and Patrick Dumont talk about casino floor activation correlating with room count and Thailand as separate opportunity.

Q: Daniel Politzer from Wells Fargo asks about Venetian mass volumes and Londoner return on investment.

A: Patrick Dumont and Grant Chum discuss Venetian mass volume impact from events and Londoner ROI perspective.

Q: Chad Beynon from Macquarie asks about turnover rent and retail in Macao, and Texas legislation.

A: Grant Chum talks about turnover rent related to Four Seasons retail and Patrick Dumont mentions Texas legislation status.

Q: Joseph Stauff from SIG asks about MBS investment returns and long-term EBITDA ramp.

A: Patrick Dumont and Robert Goldstein discuss MBS investment returns across metrics and long-term EBITDA potential.

Q: George Choi from Citigroup asks about MBS side bets and Londoner premium mass capacity.

A: Robert Goldstein and Grant Chum talk about baccarat side bets and Londoner premium mass salon opening.

Q: Steven Wieczynski from Stifel asks about competitor promotional activity and impact of Londoner reopening.

A: Patrick Dumont and Grant Chum discuss Macao's competitive nature and focus on EBITDA generation.