Las Vegas Sands reported net sales of $ 943 million (£ 751.4 million / € 895.2 million) in the first quarter of 2022.
The operator’s Macau business continued to be affected by travel regulations, resulting in a 21.1% year-on-year decrease in net sales.The income for the first three months of the year for the entire SAR is It decreased by 24.8% from 2021.
Much of the revenue comes from running the casino, reaching $ 627 million. This was a 27.5% decrease from the first quarter of 2021. Mall revenue was down 4.4% to $ 149 million in total revenue, while room revenue was fairly stable at $ 95 million, just $ 1 million, down $ 1 million year-on-year.
Food and beverage revenues were down $ 3 million to $ 53 million, while convention, retail and other revenues were down 17.3% to $ 19 million.
Casino operations in Macau fell 29% to $ 551 million. Venetian Macao made the most revenue in the first quarter at $ 227 million. However, this is still a significant reduction from the $ 340 million revenue recorded a year ago.
Macau in London had revenues of $ 121 million, while Plaza Macau and Four Seasons Macao had revenues of $ 102 million. The remaining revenue comes from the Parisian Macao, Sands Macao and ferry operations.
Elsewhere, Singapore’s Marina Bay Sands real estate accounted for $ 399 million in revenue.
In February, Sands completed the sale of its Las Vegas real estate and business, including the Venetian Resort, to Apollo Global Management. The total purchase price was $ 6.25 billion, cash revenue was $ 5.05 billion, and seller loans were $ 1.3 billion.
Operating expenses also decreased year-on-year to $ 1.24 billion, down 3.6%.
The resort business accounted for $ 838 million, down 12.4%. Depreciation was up 3.5% to $ 264 million. The total development cost was $ 60 million, but the corporate cost was $ 59 million. The remaining $ 24 million consisted of pre-opening, losses from the disposal of impaired assets, and amortization of interest on leasehold rights.
This resulted in an operating loss of $ 302 million, which was $ 206 million higher than the loss in the first quarter of 2021.
Following interest income of $ 4 million, interest expense of $ 156 million, and other expenses of $ 22 million, pre-tax losses from continuing operations were $ 476 million.
After considering income tax costs of $ 2 million, the quarterly net loss was $ 478 million, an increase of $ 198 million from the first quarter of 2021.
Robert Goldstein, chairman and chief executive officer of Las Vegas Sands, explained that continued Covid-19 regulations restricted tourists and affected the quarter.
“We are confident in the recovery of travel and tourism spending across the market,” said Goldstein.
“While the demand for our products from visiting customers remains strong, pandemic-related travel restrictions in both Macau and Singapore continue to limit visits and hinder our current financial performance.”
Looking to the future, Goldstein said Las Vegas Sands continues to consider developing the digital segment while focusing on resort development.
“We are confident that we will return to positive cash flow in both Macau and Singapore in the future as regulations are relaxed and travel and tourism recover,” he continued. “In addition, we continue to seek opportunities to develop large resorts in both the United States and Asia. The sale of Las Vegas was completed this quarter, further increasing liquidity and options. . “
“Finally, you can build your digital presence and explore multiple opportunities.”
In July 2021, Sands announced a program to invest in game suppliers for the online gaming sector, which was previously away from the business.
At the time of the announcement, Goldstein said it was a “great opportunity” for the company to invest in early-stage technology.
Patrick Dumont, President and Chief Operating Officer of Las Vegas Sands, added that the business is still in its infancy in digital investment, but was confident that there would be an immediate opportunity to discuss this area.
“We are really in the growth and investment stage,” he said. “So it’s a very early stage and we may discuss it, we’ll definitely start talking about it. But at this point it’s a very early stage. We’re teaming up. I’m looking forward to the future. “
Dumont also explained that recent investments in US Integrity, a sports betting integrity monitoring platform, will help boost the company’s entry into the digital sector.
“From our point of view, we are looking at a variety of different businesses in the early stages or in the early stages to ensure that we are at the forefront of innovation in the industry,” Dumont said. “Therefore, this is part of a broader strategy.”
“This is a relatively small investment compared to Las Vegas, and over time we believe that this and other investments will help us contribute to our overall digital activities.”
