LVSC(LVS) - 2024 Q2 - Quarterly Report

Financial Performance - Net revenues for the three months ended June 30, 2024, were $2.76 billion, an increase of 8.6$2.54 billion for the same period in 2023[105]. - Operating income for the same period was $591 million, up from$537 million year-over-year, reflecting a positive trend in operational performance[105]. - Net income increased to $424 million for the three months ended June 30, 2024, compared to$368 million for the same period in 2023[105]. - Consolidated net revenues for the six months ended June 30, 2024, were $5.72 billion, an increase of$1.06 billion or 22.7% compared to $4.66 billion for the same period in 2023[123]. - Net income for the six months ended June 30, 2024, was$1.007 billion, compared to $513 million for the same period in 2023, reflecting a significant increase[141]. Casino Operations - Casino revenues rose by$173 million, driven by a $116 million increase in Macao operations and a$57 million increase at Marina Bay Sands[106]. - Total net casino revenues for The Londoner Macao increased by 13.2% to $318 million compared to$281 million in the previous year[109]. - Total net casino revenues for Macao operations reached $1.194 billion for the six months ended June 30, 2024, a 23.2$969 million in 2023[124]. - Total casino revenue reached $1.141 billion, reflecting a 10.3$1,565 million compared to $1,242 million in the previous year[125]. Visitor Trends - Total visitation to Macao increased approximately 52.9$2.17 billion, an increase of 8.2% driven by higher visitation and increased gaming taxes[114]. - Operating expenses increased by $665 million to$4.41 billion for the six months ended June 30, 2024, compared to $3.75 billion for the same period in 2023[132]. Cash and Liquidity - The company reported total unrestricted cash and cash equivalents of$4.71 billion as of June 30, 2024, ensuring sufficient liquidity for ongoing operations[99]. - Net cash generated from operating activities for the six months ended June 30, 2024, was $1,528 million, compared to$1,382 million for the same period in 2023[155]. - As of June 30, 2024, the company held approximately $4.71 billion in unrestricted cash and cash equivalents, with$2.65 billion held by non-U.S. subsidiaries[159]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, totaled $481 million, an increase from$362 million in the prior year[155]. - The company has a financial commitment to spend approximately $4.45 billion on capital and operating projects in Macao through 2032, with$4.15 billion allocated for nongaming projects[151]. - The renovation of Towers 1 and 2 of Marina Bay Sands was completed at a cost of approximately $1.0 billion, enhancing luxury amenities and guest experiences[152]. - The company acquired the Nassau Veterans Memorial Coliseum for$241 million, intending to develop an Integrated Resort in New York[153]. Debt and Interest - The weighted average total debt balance decreased from $15.56 billion to$14.73 billion, contributing to lower interest costs[119]. - Interest expense decreased by $23 million to$186 million for the three months ended June 30, 2024, primarily due to a reduction in the weighted average interest rate from 5.4% to 5.0%[119]. - Interest expense decreased to $368 million for the six months ended June 30, 2024, down from$428 million in the same period of 2023, due to a lower weighted average interest rate of 5.0%[139]. Taxation - The effective income tax rate for the three months ended June 30, 2024, was 14.5%, compared to 11.8% for the same period in 2023[121]. - The effective income tax rate for the six months ended June 30, 2024, was 8.1%, down from 16.2% in the prior year, due to an income tax exemption on gaming operations in Macao[141]. Market Risks - The company is dependent on properties primarily in Macao and Singapore for all cash flow and the ability of subsidiaries to make distribution payments[167]. - Increased competition in Macao includes recent and upcoming increases in hotel rooms, meeting and convention space, and potential additional gaming licenses[167]. - The company faces risks related to government regulation of the casino industry, including changes to existing laws and regulations[167].