LAS VEGAS SANDS CORP Q3 FY2024 earnings call

• Macao: Despite disruption at the Londoner, delivered solid EBITDA. Opened Londoner Grand Casino in late September and 300 Londoner Grand suites, with plans to have 1,500 suites and 905 rooms in service by Golden Week 2025. SCL leads the market in gaming and non-gaming revenue and EBITDA share.
• Singapore: Delivered strong results despite poor hold percentage. Positive impact from capital investment program and growth of high-value tourism. Completion of investment programs in H1 2025 will provide growth runway.
• Capital return: Repurchased $450 million of LVS stock, Board increased repurchase authorization to $2 billion, and increased annual dividend to $1 per share for 2025.

In Macao, EBITDA was $585 million. For Singapore, Marina Bay Sands (MBS) had an EBITDA of $406 million. Macao's EBITDA margin from the portfolio of properties excluding the Londoner, when adjusted for lower-than-expected hold, would have been 35.1% or down 110 basis points compared to Q3 2023. MBS' EBITDA margin, assuming expected hold, would have been 47.5%, 40 basis points higher than Q3 2023.

• Macao: Believes Macao market gross gaming revenues will exceed $30 billion in 2025 and grow further. Londoner Grand suites and rooms to be fully in service by Lunar New Year 2025 and Golden Week 2025.
• Singapore: Completion of investment programs in H1 2025 will lead to growth. Marina Bay Sands IR2 project with full casino amenities, targeting strong returns from the premium mass segment.

• Online gambling: Impact on markets like New York, where growth of online gambling in other US states is a concern and could affect land-based revenue projections.
• Construction disruption: Disruption from ongoing construction work in properties like Marina Bay Sands and the Venetian Cotai Arena affecting room counts and operations.

Q: About Macao, contra gaming revenues as a percentage of gross gaming revenues went down. How much is due to managing business differently, market promotional activity, or mix?

A: Impacted by disruption, focusing on managing business more efficiently to improve margins. Room inventory out of place also affected margins. Back to core strategy of competing on products and content despite disruption.

Q: Regarding Marina Bay Sands EBITDA and disruption, cadence of disruption and how it subsides?

A: Substantial disruption from room count and casino floor work. By middle of 2025, disruption should subside. IR2 project with full casino amenities, laser focus on premium mass segment.

Q: On luxury spend pressure from Chinese consumer and overlap with premium mass consumer?

A: Macao is resilient despite Chinese economic factors. Macao GGR remains strong before stimulus measures. Economic tailwinds from stimulus will help other segments like base mass and retail.

Q: On Macao visitation through the quarter and customer patterns?

A: Visitation improved to 93% recovery vs 2019 Q3, driven by day trip visitors. Strength in premium segments, but base mass and retail not fully impacted yet. Macao remains desirable as a tourist destination.

Q: On Singapore ADR and rooms out of service?

A: ADR reflects compression from rooms out but more importantly quality and service levels of newly renovated building. Arena and other amenities will drive further ADR growth.

Q: On Macao arena renovation and impact?

A: Venetian arena to relaunch end of November/December. Londoner arena already programming shows. Both arenas will boost diversification and visitation in Macao.

Q: On Macao concessionaire focus with new Chief Executive in Macao?

A: No radical change expected. Business as usual, focus on adhering to government requirements and long-term development focus.

Q: On New York licensing process and online gambling impact?

A: Applications for licensure in spring 2025, decision likely Q1 2026. Concern over online gambling growth affecting land-based revenue projections in New York.