Financial Performance - Integrated Resorts in Macao and Singapore contributed 53% and 47% of total adjusted property EBITDA, respectively, during 2024[27]. - Macao's annual gross gaming revenues reached 226.78 billion patacas (approximately $28.35 billion) in 2024, marking a 23.9% increase compared to 2023[47]. - Visitation to Macao was approximately 35 million in 2024, reflecting a 23.8% increase from 2023[48]. - Singapore welcomed approximately 16.5 million international visitors in the twelve months ended December 31, 2024, a 21.4% increase compared to 2023[56]. - The company employs approximately 40,300 employees worldwide, with about 39,900 being full-time[67]. Gaming Operations - The mass market gaming segment is expected to continue delivering long-term growth due to economic expansion and an increasing number of high net worth individuals in Asia[28]. - The Venetian Macao features approximately 503,000 square feet of gaming space with 678 table games and 1,140 slot machines[39]. - The Parisian Macao includes approximately 272,000 square feet of gaming space with 267 table games and 900 slot machines[43]. - Marina Bay Sands offers approximately 162,000 square feet of gaming space with around 543 table games and 3,000 slot machines and ETGs[46]. - The company is focused on enhancing its high-quality gaming product offerings to capture a larger share of the Macao gaming market[51]. Development Projects - The Londoner Macao's Phase II renovation is expected to be substantially complete in the first half of 2025, adding 1,382 and 1,023 rooms and suites[42]. - The Londoner Grand casino opened on September 26, 2024, as part of the ongoing development projects[42]. - Significant investments have been announced for new resort development projects on Cotai, aimed at increasing Macao's appeal as a business and leisure tourism hub[50]. - The total estimated cost for the Londoner Macao projects is $1.2 billion, expected to be substantially completed in the first half of 2025[79]. - The MBS Expansion Project in Singapore has an estimated total project cost of approximately $8.0 billion, including an additional 2,000 square meters of gaming area[82]. Financial Commitments and Investments - The company is obligated to invest an additional 5.56 billion patacas (approximately $695 million) in non-gaming projects due to Macao's annual gross gaming revenue reaching 183.06 billion patacas in 2023[96]. - The total investment commitment in Macao has increased to 35.80 billion patacas (approximately $4.48 billion) due to the additional investment requirement[96]. - The company has committed to invest at least 30.24 billion patacas (approximately $3.78 billion) in Macao as part of its concession agreement[95]. - As of December 31, 2024, approximately $1.36 billion has been incurred for the MBS development project, with an additional land premium estimated at $1.0 billion[84]. - The renovation of Marina Bay Sands Towers 1 and 2 cost approximately $1.0 billion, with ongoing renovations for Tower 3 estimated at $750 million[86]. Regulatory and Tax Environment - The annual fee for the Macao concession is estimated at $13 million for 2025, increasing to approximately $42 million annually for the subsequent seven years[93]. - VML received an exemption from Macao's corporate income tax on profits generated by casino operations for the period from January 1, 2023, through December 31, 2027[116]. - A shareholder dividend tax agreement was entered into with the Macao government, effective for the period from January 1, 2023, through December 31, 2025, substituting a 12% tax on dividend distributions[117]. - The goods and services tax on gross gaming revenue increased from 7% to 9% effective January 1, 2024[128]. - The casino tax rates for premium players increased to 12% and for mass players to 22% on gross gaming revenue above specified thresholds[128]. Risks and Challenges - The company faces significant risks associated with its operations in Macao, including economic, political, and legal uncertainties[135]. - The company’s operations are sensitive to fluctuations in discretionary consumer spending and may be adversely affected by economic downturns[153]. - The company is exposed to competition from numerous casinos in Macao and Singapore, as well as emerging markets in Asia, which could negatively affect its market position[186][187]. - The company faces potential adverse effects on operations and cash flows due to restrictions on subsidiaries in Singapore, Macao, and Hong Kong regarding distributions and currency exchange limitations[206]. - The company is subject to extensive regulations governing its operations in various jurisdictions, which may impact its ability to obtain or renew licenses[161]. Debt and Financial Position - As of December 31, 2024, the company had $13.75 billion of debt outstanding, net of original issue discount and deferred offering costs[170]. - The company expects $3.16 billion, $3.49 billion, $1.45 billion, $1.91 billion, and $1.91 billion in debt maturing during the years ending December 31, 2025, 2026, 2027, 2028, and 2029, respectively[173]. - The company has unrestricted cash and cash equivalents of $2.69 billion and restricted cash of $125 million as of December 31, 2024, with approximately $2.14 billion available for repatriation[145]. - The company suspended its quarterly dividend program in April 2020 due to COVID-19, but reinstated it in August 2023[142]. - The company’s future dividend payments will be at the discretion of the Board of Directors, considering various financial factors[142].
LVSC(LVS) - 2024 Q4 - Annual Report