Las Vegas Sands (LVS) reported a decline in profits for the fourth quarter of 2024, as the casino giant faced softer earnings in Macau and Singapore despite ongoing investments in both markets.
The company posted net revenue of $2.90 billion for the quarter, down slightly from $2.92 billion in the same period in 2023. Net income fell to $392 million from $469 million, a decline of $77 million. Adjusted property EBITDA stood at $1.11 billion, a 7.5 percent drop year-on-year.
Macau: A Slower Recovery Amid Investments
Macau operations – via the group’s local gaming concessionaire Sands China – generated adjusted property EBITDA of $571 million, down 12.7 percent from $654 million in Q4 2023.
Net revenue for the region also declined 4.9 percent year-on-year to $1.77 billion. The adjusted EBITDA margin dropped to 32.2 percent, down from 35.1 percent in the prior-year quarter.
Despite the downturn, the overall Macau market showed signs of resilience, with total gaming revenue reaching $7.1 billion, up 6 percent from Q4 2023, with mass gaming revenue, which is a key segment for Sands China, increasing by 5 percent year-on-year to $6.2 billion.
However, visitation from mainland China outside Guangdong province remained below pre-pandemic levels, reaching only 92 percent of 2019 figures.
The company attributed part of the weakness to ongoing renovation projects. Around 20 percent of Cotai room inventory was out of service during the quarter as Sands China continued its phased rollout of Londoner Grand suites, which will be fully available by mid-2025.
Some 2,090 additional Londoner Grand suites and rooms will come online in phases through 2Q25, while Londoner Phase II renovation work said to be ‘progressing according to plan’
The Londoner Grand Casino opened in September, with 315 suites and rooms completed and in service throughout 4Q24, while the refurbished Venetian Arena re-opened during the quarter with events commencing in November.
Sand China hotel inventory represents around 42 percent of hotel rooms on Cotai, and represents a $17 billion investment by the group.
Singapore: Record Mass Gaming Revenue but Weaker Margins
At Marina Bay Sands in Singapore, adjusted property EBITDA fell slightly to $537 million, down 1.3 percent from Q4 2023’s $544 million.
Despite this, the property recorded its highest-ever mass gaming revenue at $746 million, marking a 27.7 percent increase from the previous year. Rolling volume also grew by 11.4 percent year-on-year to $8.1 billion.
The resort remains a key investment focus, with a $1.75 billion capital enhancement programme set for completion in Q2 2025. Upgrades include new suites, refurbished rooms, and expanded leisure offerings, aimed at attracting high-value international visitors.
LVS repurchased $450 million worth of stock in Q4 2024 and paid out $145 million in dividends. The company continues to focus on long-term expansion, with further investment in Macau and the upcoming IR2 development in Singapore, which will add an ultra-luxury hotel, an arena, and expanded MICE facilities.
With market conditions still fluctuating, CEO Robert Goldstein reiterated confidence in the company’s recovery strategy, stating that the group “remains committed to delivering premium experiences in both Macau and Singapore”
“Our investments are setting the stage for long-term growth, even as we navigate near-term challenges”, the CEO noted.