LVSC(LVS) - 2025 Q2 - Quarterly Results

Executive Summary Las Vegas Sands reported strong Q2 2025 financial results driven by Macao and Singapore operations, supported by strategic capital investments and shareholder returns Q2 2025 Performance Highlights Las Vegas Sands reported strong Q2 2025 financial results with significant increases in net revenue, net income, and consolidated adjusted property EBITDA, alongside $800 million in stock repurchases Q2 2025 Consolidated Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :----------------------------- | :-------- | :-------- | :------- | | Net Revenue | $3.18 billion | $2.76 billion | +$0.42 billion | | Net Income | $519 million | $424 million | +$95 million | | Consolidated Adjusted Property EBITDA | $1.33 billion | $1.07 billion | +$0.26 billion | - LVS repurchased $800 million of common stock during the quarter[3] Management Commentary and Strategic Outlook Management expressed enthusiasm for continued growth in Macao and Singapore, driven by capital investments and enhanced offerings, supporting future investments and shareholder returns - The company is enthusiastic about delivering industry-leading growth in Macao and Singapore, benefiting from recently completed capital investment programs[2] - In Macao, decades-long investments in business and leisure tourism appeal position the company for future growth[4] - Marina Bay Sands in Singapore achieved record financial and operating performance, with new suite products and elevated service offerings driving additional growth[4] - Financial strength and industry-leading cash flow support investments, capital expenditures in Macao and Singapore, pursuit of new market growth, and returning excess capital to stockholders through share repurchases[5] Consolidated Financial Performance The company's consolidated financial performance in Q2 2025 showed significant growth in net revenues, operating income, and net income, with diluted EPS rising to $0.66 Key Financial Metrics Consolidated net revenues increased to $3.18 billion in Q2 2025, driven primarily by casino revenue growth, with operating income, net income, and diluted EPS also seeing substantial increases Condensed Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :---------------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $3,175 | $2,761 | +$414 | | Casino revenue | $2,415 | $2,035 | +$380 | | Rooms revenue | $345 | $313 | +$32 | | Operating income | $783 | $591 | +$192 | | Net income | $519 | $424 | +$95 | | Net income attributable to LVS | $461 | $353 | +$108 | | Diluted EPS | $0.66 | $0.48 | +$0.18 | | Consolidated Adjusted Property EBITDA | $1,334 | $1,073 | +$261 | Other Financial Details Interest expense, net, increased to $194 million in Q2 2025 due to a higher weighted average debt balance, while the effective income tax rate was 14.8%, primarily influenced by Singapore operations Other Financial Factors (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :-------- | :-------- | :------- | | Interest expense, net | $194 million | $186 million | +$8 million | | Weighted average debt balance | $15.85 billion | $14.73 billion | +$1.12 billion | | Weighted average borrowing cost | 4.8% | 5.0% | -0.2 pts | | Effective income tax rate | 14.8% | 14.5% | +0.3 pts | - The income tax rate was primarily driven by a 17% statutory rate on Singapore operations[9] Operational Performance by Segment Operational performance varied by segment, with Macao showing slight revenue growth and stable EBITDA, while Marina Bay Sands achieved record financial performance Macao Operations Macao operations reported a slight increase in net revenues to $1.79 billion and stable Adjusted Property EBITDA at $566 million, with varied performance across properties Macao Operations Consolidated (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net Revenues | $1,797 | $1,754 | +$43 | | Adjusted Property EBITDA | $566 | $561 | +$5 | | EBITDA Margin % | 31.5% | 32.0% | -0.5 pts | Sands China Ltd. (SCL) Sands China Ltd. (SCL) reported a 2.5% increase in total net revenues but a decrease in net income for Q2 2025 Sands China Ltd. (SCL) Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------- | :----------------- | :----------------- | :---------------- | | Total Net Revenues | $1,790 | $1,746 | +$44 | | Net Income | $214 | $246 | -$32 | The Venetian Macao The Venetian Macao experienced decreases in net revenues and Adjusted Property EBITDA despite increased occupancy, with mixed gaming metrics including a lower Rolling Chip win percentage The Venetian Macao Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $663 | $686 | -$23 | | Adjusted Property EBITDA | $236 | $262 | -$26 | | EBITDA Margin % | 35.6% | 38.2% | -2.6 pts | | Rolling Chip win % | 3.57% | 4.86% | -1.29 pts | | Non-Rolling Chip drop | $2,348 | $2,325 | +$23 | | Occupancy % | 98.6% | 96.4% | +2.2 pts | The Londoner Macao The Londoner Macao demonstrated strong growth in Q2 2025, with significant increases in net revenues and Adjusted Property EBITDA, improved gaming performance, and a substantial rise in ADR The Londoner Macao Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $642 | $444 | +$198 | | Adjusted Property EBITDA | $205 | $103 | +$102 | | EBITDA Margin % | 31.9% | 23.2% | +8.7 pts | | Rolling Chip win % | 4.09% | 2.47% | +1.62 pts | | Non-Rolling Chip drop | $2,196 | $1,647 | +$549 | | Average daily room rate (ADR) | $259 | $195 | +$64 | The Parisian Macao The Parisian Macao experienced declines in net revenues and Adjusted Property EBITDA in Q2 2025, with improved occupancy but significantly decreased Non-Rolling Chip drop volumes The Parisian Macao Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $194 | $265 | -$71 | | Adjusted Property EBITDA | $44 | $83 | -$39 | | EBITDA Margin % | 22.7% | 31.3% | -8.6 pts | | Non-Rolling Chip drop | $663 | $1,088 | -$425 | | Occupancy % | 99.2% | 95.7% | +3.5 pts | The Plaza Macao and Four Seasons Macao The Plaza Macao and Four Seasons Macao reported reduced net revenues and Adjusted Property EBITDA in Q2 2025, primarily due to a substantial decrease in Rolling Chip gaming volumes The Plaza Macao and Four Seasons Macao Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $194 | $250 | -$56 | | Adjusted Property EBITDA | $66 | $100 | -$34 | | EBITDA Margin % | 34.0% | 40.0% | -6.0 pts | | Rolling Chip volume | $1,399 | $2,449 | -$1,050 | | Occupancy % | 92.1% | 88.2% | +3.9 pts | Sands Macao Sands Macao experienced slight declines in net revenues and Adjusted Property EBITDA in Q2 2025, with an improved Rolling Chip win percentage but a decrease in Non-Rolling Chip win percentage Sands Macao Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $71 | $79 | -$8 | | Adjusted Property EBITDA | $9 | $10 | -$1 | | EBITDA Margin % | 12.7% | 12.7% | 0.0 pts | | Rolling Chip win % | 5.60% | 4.65% | +0.95 pts | | Non-Rolling Chip win % | 14.4% | 17.1% | -2.7 pts | | Occupancy % | 99.4% | 99.0% | +0.4 pts | Marina Bay Sands (Singapore) Marina Bay Sands delivered record financial performance in Q2 2025, with substantial increases in net revenues and Adjusted Property EBITDA, strong growth across all gaming metrics, and significantly improved ADR Marina Bay Sands Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------------- | :----------------- | :----------------- | :---------------- | | Net revenues | $1,388 | $1,016 | +$372 | | Adjusted Property EBITDA | $768 | $512 | +$256 | | EBITDA Margin % | 55.3% | 50.4% | +4.9 pts | | Rolling Chip volume | $8,945 | $6,075 | +$2,870 | | Rolling Chip win % | 5.26% | 4.68% | +0.58 pts | | Non-Rolling Chip win % | 23.7% | 17.8% | +5.9 pts | | Average daily room rate (ADR) | $888 | $797 | +$91 | - The expected Rolling Chip win percentage for Marina Bay Sands was revised from 3.30% to 3.70% due to an increase in win percentage over recent years[39][55] Capital Management and Shareholder Returns The company maintained a strong liquidity position, actively managed its debt, invested in capital expenditures, and continued robust shareholder return programs Balance Sheet and Liquidity As of June 30, 2025, the company maintained a strong liquidity position with $3.45 billion in unrestricted cash and access to $4.45 billion under revolving credit facilities, with total debt outstanding at $15.68 billion Balance Sheet Highlights (as of June 30, 2025) | Metric | Amount | | :---------------------------------- | :------------- | | Unrestricted cash balances | $3.45 billion | | Available under revolving credit facilities | $4.45 billion | | Total debt outstanding (excluding finance leases) | $15.68 billion | Debt Management The company issued $1.50 billion in senior unsecured notes to redeem existing debt and for general corporate purposes, while also drawing funds for SCL note redemption and Marina Bay Sands expansion - Issued $1.50 billion in senior unsecured notes (5.625% due 2028 and 6.000% due 2030) to redeem $500 million of 2.900% Senior Notes due 2025 and for general corporate purposes, including share repurchases[13][14] - Drew down HKD 12.75 billion (approx. $1.64 billion) from the 2024 SCL Term Loan Facility to redeem $1.63 billion of 5.125% SCL Senior Notes due 2025[15] - Drew down SGD 1.13 billion (approx. $848 million) from the 2025 Singapore Delayed Draw Term Facility to fund the land premium for the Marina Bay Sands expansion project[16] Capital Expenditures Capital expenditures for Q2 2025 totaled $286 million, with significant investments in both Macao and Marina Bay Sands for construction, development, and maintenance Q2 2025 Capital Expenditures | Category | Amount (Millions) | | :-------------------------------- | :---------------- | | Total Capital Expenditures | $286 | | Macao (construction, development, maintenance) | $138 | | Marina Bay Sands (construction, development, maintenance) | $129 | Shareholder Return Programs The company repurchased $800 million of common stock during Q2 2025, with $1.20 billion remaining authorized, and also increased its ownership in SCL and paid a quarterly dividend of $0.25 per common share Share Repurchase Program (Q2 2025) | Metric | Amount | | :------------------------------------ | :------------- | | Common stock repurchased (Q2 2025) | $800 million | | Shares repurchased (Q2 2025) | 20 million | | Weighted average price per share (Q2 2025) | $39.59 | | Remaining authorized under program (as of June 30, 2025) | $1.20 billion | | Total investment in share repurchases (since Q4 2023) | $3.50 billion | - Purchased $179 million of SCL common stock, increasing ownership to 73.4% as of July 23, 2025[11] - Paid a quarterly dividend of $0.25 per common share, with the next dividend of $0.25 per share payable on August 13, 2025[11] Non-GAAP Financial Measures The report provides definitions and reconciliations for key non-GAAP financial measures, including Adjusted Net Income and Consolidated Adjusted Property EBITDA, along with the impact of hold-adjusted win percentage Non-GAAP Definitions The report defines key non-GAAP financial measures like Adjusted Net Income and Consolidated Adjusted Property EBITDA, highlighting their utility for evaluating underlying financial performance and valuation - Adjusted net income (loss) is net income (loss) attributable to Las Vegas Sands, excluding specific non-cash and non-recurring items, net of income tax[27] - Consolidated adjusted property EBITDA is net income (loss) before stock-based compensation, corporate, pre-opening, development, depreciation and amortization, leasehold interest amortization, interest, other income/expense, debt modification/retirement, and income taxes[29] - These non-GAAP measures are used by management and industry analysts to evaluate operations and operating performance, providing insight into underlying financial performance on a year-over-year and quarter-sequential basis[26] Reconciliations Detailed reconciliations are provided for Net Income to Consolidated Adjusted Property EBITDA, and Net Income Attributable to LVS to Adjusted Net Income and Adjusted Earnings per Diluted Share, illustrating the adjustments made from GAAP figures Reconciliation of Net Income to Consolidated Adjusted Property EBITDA (Q2 2025 vs Q2 2024) | Item | Q2 2025 (Millions) | Q2 2024 (Millions) | | :---------------------------------- | :----------------- | :----------------- | | Net income | $519 | $424 | | Add (deduct) adjustments (e.g., tax, interest, D&A, development, corporate) | $815 | $649 | | Consolidated Adjusted Property EBITDA | $1,334 | $1,073 | Reconciliation of Net Income Attributable to LVS to Adjusted Net Income (Q2 2025 vs Q2 2024) | Item | Q2 2025 (Millions) | Q2 2024 (Millions) | | :---------------------------------- | :----------------- | :----------------- | | Net income attributable to LVS | $461 | $353 | | Add (deduct) adjustments (e.g., pre-opening, development, tax impact) | $86 | $58 | | Adjusted net income attributable to LVS | $547 | $411 | Reconciliation of Net Income per Diluted Share to Adjusted Earnings per Diluted Share (Q2 2025 vs Q2 2024) | Item | Q2 2025 | Q2 2024 | | :---------------------------------- | :------ | :------ | | Net income attributable to LVS per diluted share | $0.66 | $0.48 | | Adjustments per diluted share | $0.13 | $0.07 | | Adjusted earnings per diluted share | $0.79 | $0.55 | Hold-Adjusted Win Percentage Impact The report details the estimated impact of hold-adjusted win percentage on Net Revenues and Adjusted Property EBITDA for Macao Operations and Marina Bay Sands, showing a negative impact in Q2 2025 due to actual win percentages differing from expected rates Impact on Net Revenues for Hold-Adjusted Win Percentage (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | | :---------------- | :----------------- | :----------------- | | Macao Operations | $(11) | $6 | | Marina Bay Sands | $(137) | $(59) | | Total Impact | $(148) | $(53) | Impact on Adjusted Property EBITDA for Hold-Adjusted Win Percentage (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | | :---------------- | :----------------- | :----------------- | | Macao Operations | $(7) | $4 | | Marina Bay Sands | $(107) | $(46) | | Total Impact | $(114) | $(42) | - The expected Rolling Chip win percentage for Macao operations is 3.30%, and for Marina Bay Sands, it was revised to 3.70% (from 3.30%) in Q1 2025[38][39] Supplemental Data - Asian Retail Mall Operations The Asian Retail Mall Operations generated $187 million in gross revenue and $165 million in operating profit for Q2 2025, achieving an overall operating profit margin of 88.2%, with strong tenant sales per square foot at key properties Asian Retail Mall Operations (Q2 2025) | Property | Gross Revenue (Millions) | Operating Profit (Millions) | Operating Profit Margin | Gross Leasable Area (sq. ft.) | Occupancy % | Tenant Sales Per Sq. Ft. (TTM) | | :-------------------------------- | :----------------------- | :-------------------------- | :---------------------- | :---------------------------- | :---------- | :----------------------------- | | Shoppes at Venetian | $62 | $56 | 90.3% | 825,079 | 85.1% | $1,700 | | Shoppes at Four Seasons Luxury Retail | $28 | $25 | 89.3% | 164,144 | 100.0% | $5,295 | | Shoppes at Londoner | $21 | $17 | 81.0% | 517,603 | 75.6% | $1,510 | | Shoppes at Marina Bay Sands | $62 | $56 | 90.3% | 620,513 | 98.8% | $2,837 | | Total | $187 | $165 | 88.2% | 2,470,383 | 86.4% | $2,243 | - Approximately 14,000 square feet of space was removed from the gross leasable area during Q2 2025 as it was taken off the market[58] Company Information This section provides an overview of Las Vegas Sands as a leading global integrated resort developer and operator, along with important disclosures regarding forward-looking statements About Sands Las Vegas Sands (NYSE: LVS) is a leading global developer and operator of integrated resorts, known for iconic properties like Marina Bay Sands in Singapore and multiple resorts in Macao SAR, China, with a strong commitment to corporate responsibility and ESG leadership - Sands is the leading global developer and operator of integrated resorts, driving leisure and business tourism and delivering economic benefits[18] - The company's portfolio includes Marina Bay Sands in Singapore and The Venetian Macao, The Londoner Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, and Sands Macao in Macao SAR, China, through majority ownership in Sands China Ltd[20] - Sands is dedicated to corporate responsibility, anchored by serving people, communities, and the planet, and is included on the Dow Jones Sustainability Indices[21] Forward-Looking Statements The press release contains forward-looking statements regarding business strategies and future operations, which are subject to various risks and uncertainties, including economic conditions, government regulation, and market factors, and readers are cautioned not to place undue reliance on these statements - Forward-looking statements discuss business strategies and expectations concerning future operations, margins, profitability, liquidity, and capital resources[22] - These statements involve risks and uncertainties beyond the company's control, such as gaming licenses, general economic conditions, travel disruptions, government regulation, political instability, and currency fluctuations[22][23] - Readers are cautioned not to place undue reliance on forward-looking statements, and the company assumes no obligation to update them[23]