Las Vegas Sands Corp. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Singapore: MBS' EBITDA was $743 million with a margin of 51.7%, and the introduction of smart tables on baccarat games has changed the theoretical hold percentage for rolling baccarat play.
• Macau: Macau EBITDA was $601 million, with margin adjustments due to marketing changes and market growth. The team has adapted to the market and made changes to be more competitive, expecting additional share gains and EBITDA growth in the fourth quarter.
• Capital Return: Repurchased $500 million of LVS stock during the quarter, paid a recurring quarterly dividend of $0.25 per share, and increased the quarterly dividend by 20% for 2026. Purchased $337 million of SCL stock, increasing ownership to 74.76%.

Segment Performance

• Marina Bay Sands (Singapore): Delivered EBITDA of $743 million with a margin of 51.7%. Mass gaming and slot was a record $905 million, reflecting 122% growth from Q3 2019 and 35% higher than last year. The introduction of smart tables on baccarat games has enabled a new methodology for theoretical hold percentage.
• Macau: Delivered $601 million EBITDA for the quarter. Mass market revenue jumped to 25.4% this quarter from 23.6% in Q1 2025. Typhoon negatively impacted reported EBITDA by about $20 million. Londoner is moving towards $1-plus billion of EBITDA.

Guidance

• Expect additional share gains and EBITDA growth in Macau's fourth quarter.
• Singapore's results are sustainable due to high-value tourism and strong asset performance.
• Continued focus on capital allocation through dividends and share repurchases, with plans to return capital to shareholders in a prudent manner.

Risks

• Market volatility could impact financial results.
• Intense competition in Macau and Singapore markets may affect market share and profitability.

Question and Answer

• Q: For Singapore, about the hold rate in VIP and mass, and if there's potential to raise mass hold? A: Patrick Dumont: Right now, smart tables are rolled out where accurate rolling table data is available. Mass floor has a mix of games, so it's not ready to give data on mass hold. Mass hold isn't normalized due to volume of play and game mix.
• Q: On Macau, progress in market share in premium mass? A: Grant Chum: They started tweaking programs and changing marketing programs in the second quarter, saw improvement in the third quarter, and are marrying tactical incentives with product advantage. They're only halfway through the process of gaining market share in premium mass.
• Q: Thoughts on capital allocation beyond SCL and dividends? A: Patrick Dumont: The company is a capital allocation story, focused on returning capital to shareholders through dividends and share repurchases. They're a shareholder-friendly company, allocating capital with growth in mind and returning capital when high-return investment opportunities aren't available.