Casino operator Las Vegas Sands Corp. has reported first-quarter earnings that exceeded Wall Street expectations. The integrated resorts developer posted adjusted earnings of 59 cents per share for the quarter ended March 31, surpassing the analysts’ consensus of 57 cents per share, according to data compiled by LSEG, as reported by Reuters.
Strong Singapore operations
For the first quarter of 2025, Las Vegas Sands reported total revenues of $2.86 billion, just under analysts’ average estimate of $2.89 billion. Despite the modest revenue miss, the company has managed to outperform on earnings due to a strong performance from its Singapore operations, which helped counterbalance a revenue decline in Macau. Revenue from Las Vegas Sands’ Macau properties for the quarter fell to $1.71 billion, compared to $1.81 billion in the same period last year. However, revenue from the casino operator’s Singapore operations increased to $1.16 billion from $1.15 billion previously.
Chief Executive Officer (CEO) Robert Goldstein said, “Our new suite product and elevated service offerings position us for additional growth as travel and tourism spending in Asia expands.”
Slowing growth in integrated resorts
The operator has been witnessing slowing growth in its integrated resorts and casino business from its Macau properties. Properties like The Venetian Macao and The Parisian Macao have been experiencing reduced visitor traffic and lower gaming volumes since its previous quarters. Analysts cite a combination of weaker-than-expected tourism, heightened regulatory oversight, and increased regional competition as key reasons behind the decline.
In the fourth quarter of 2024, Las Vegas Sands reported a marginal decline in net revenue, registering $2.90 billion, a 0.7 percent decline from the previous year. Net income for the quarter fell to $392 million, down from $469 million in the corresponding year. The company reported the consolidated adjusted property earnings before interest, taxes, depreciation and amortisation of $1.11 billion. This marked a decline of 7.5 percent from the previous year period.
Recently, the operator confirmed it is withdrawing from the bidding process for a commercial casino licence in downstate New York. With this, LVS is officially out of the $4 billion casino resort at the Nassau Coliseum site in Uniondale, New York. Instead, the company intends to focus on a significant share buyback programme. The decision was announced by the company’s president and chief operating officer, Patrick Dumont, during a first-quarter earnings call. He explained that the company believes the best use of its capital at present is to return value to shareholders by buying back shares in both LVS and its Macau-based subsidiary, Sands China.
