Good Morning. Las Vegas Sands will kick off the earnings season of the Macau-linked operators after the close on Wednesday, with analysts expecting a loss. However, with revenue artificially depressed due to Macau’s zero-Covid policies, much of the investor attention will be focused on the cash burn there and any color management can provide on the gaming law or concession process. In Singapore, all eyes will be on whether the strong first quarter rebound has continued as the company had been expecting.

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What you need to know

  • Macau operators are expected to post a combined EBITDA loss of just under $800m this year as the recovery is pushed out to 2024, Morgan Stanley said.
  • The Macau government has indicated there will be some easing of the strict Covid lockdowns from July 23rd as local cases subside.
  • Royal Caribbean Group announced that it will acquire the ultra-luxury cruise ship Endeavour, from insolvent Genting Hong Kong for $275 million USD.

On the radar


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LVS, Las Vegas Sands, Singapore

LVS earnings focus to be on Singapore recovery, Macau cash burn

Las Vegas Sands will kick off the 2Q22 earnings season for Macau-linked operators on Wednesday, with the consensus forecast being for the operator to post a loss of $0.23 per share, narrowing slightly from a loss of $0.26 in the same period a year ago. According to Zacks, revenue is likely to be around $954 million, a decline of more than 18 percent from the prior year as a recovery in Singapore fails to offset the dismal performance in Macau. The firm points out that the group’s 1Q22 results were a major negative surprise, falling some 66.6 percent below consensus forecasts. It has missed analysts’ forecasts in three out of the past four earnings reports. 

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