LVSC(US:LVS)2024-04-19 20:05Financial Performance - Net revenues for Q1 2024 were $2.96 billion, a 39.6% increase from $2.12 billion in Q1 2023[99] - Operating income for Q1 2024 was $717 million, compared to $378 million in Q1 2023[99] - Net income for Q1 2024 was $583 million, up from $145 million in Q1 2023[99] - Total operating expenses rose to $2.24 billion, marking a 28.7% increase from $1.74 billion year-over-year[108] - Casino expenses increased by 35.0% to $1.18 billion, up from $874 million, driven by higher gaming taxes[109] - Consolidated adjusted property EBITDA reached $1.21 billion, a 52.4% increase from $792 million in the previous year[111] - Net income for the three months ended March 31, 2024, was $583 million, compared to $145 million for the same period in 2023[113] Casino Operations - Casino revenues increased by $687 million compared to Q1 2023, driven by higher visitation and increased table games and slot volumes[100] - Non-Rolling Chip drop in Macao increased by 36.5% to $2.41 billion in Q1 2024 compared to Q1 2023[101] - Rolling Chip volume in Macao decreased by 17.5% to $1.04 billion in Q1 2024 compared to Q1 2023[101] - Slot handle in Macao increased by 41.9% to $1.49 billion in Q1 2024 compared to Q1 2023[101] - Total net casino revenues for The Londoner Macao reached $419 million, a 111.6% increase compared to $198 million in the previous year[103] - Total net casino revenues for Marina Bay Sands in Singapore rose to $859 million, a 44.9% increase from $593 million[103] - Rolling Chip volume at The Plaza Macao and Four Seasons Macao surged to $2,500 million, a 103.7% increase from $1,227 million[103] Visitor Statistics - Macao operations saw a 125.8% increase in total visitation from mainland China during the two months ended February 29, 2024, compared to the same period in 2023[91] - Marina Bay Sands reported a 29% increase in airlift passenger movement in January and February 2024 compared to the same period in 2023[92] Room and Mall Revenues - Total room revenues for The Venetian Macao increased by 33.3% to $52 million, up from $39 million[104] - The Londoner Macao's occupancy rate improved to 96.5%, a significant increase of 49.8 percentage points from 46.7%[104] - Total mall revenues at Shoppes at Venetian increased to $54 million, a 5.9% rise from $51 million in the same period last year[106] - Tenant sales per square foot at Shoppes at Venetian surged by 64.8% to $1,859 from $1,128[106] Expenses and Financial Commitments - General and administrative expenses rose by $35 million, primarily due to increased payroll and marketing costs[110] - Development expenses increased to $53 million, reflecting ongoing evaluations for new business opportunities in New York and Texas[110] - The company has a financial commitment to spend approximately $4.44 billion on capital and operating projects in Macao through 2032[123] Capital Projects and Renovations - Phase II of The Londoner Macao is ongoing, with an estimated cost of $1.2 billion and expected completion in early 2025[123] - The total minimum project cost for the MBS Expansion Project is approximately SGD 4.5 billion (approximately $3.3 billion), with expected costs to materially exceed this due to inflation and higher material and labor costs[124] - The renovation of Towers 1 and 2 of Marina Bay Sands was completed at a cost of approximately $1.0 billion, enhancing luxury amenities[124] - Ongoing renovations of Tower 3 hotel rooms are estimated to cost approximately $750 million, with expected completion by 2025[124] - The acquisition of Nassau Veterans Memorial Coliseum was completed for $241 million, with plans to develop an Integrated Resort pending a casino license[126] Cash Flow and Financing - Cash generated from operating activities increased by $273 million for the three months ended March 31, 2024, compared to the same period in 2023, driven by increased visitation in Macao and Singapore[129] - Capital expenditures for the three months ended March 31, 2024, totaled $196 million, including $99 million for Marina Bay Sands construction activities[130] - Net cash flows used in financing activities were $639 million for the three months ended March 31, 2024, primarily due to $450 million for common stock repurchases[132] - As of March 31, 2024, the company held approximately $4.96 billion in unrestricted cash and cash equivalents, with $4.43 billion available for borrowing under credit facilities[133] Tax and Interest Rates - The effective income tax rate for the three months ended March 31, 2024, was 2.8%, significantly lower than 25.6% in the same period of 2023[117] - Interest expense decreased by $34 million to $182 million, primarily due to a reduction in the weighted average interest rate from 5.4% to 5.0%[116] - Interest income increased slightly to $71 million, up from $70 million in the prior year, due to higher market rates[117] Risks and Competition - The company faces increased competition in Macao, including recent and upcoming increases in hotel rooms and potential additional gaming licenses[140] - The company is dependent on properties primarily in Macao and Singapore for all cash flow and the ability of subsidiaries to make distribution payments[140] Currency and Financial Instruments - Foreign currency transaction losses were $6 million for the three months ended March 31, 2024, primarily due to U.S. dollar denominated debt issued by SCL[144] - A hypothetical 10% weakening of the U.S. dollar/SGD exchange rate would result in a foreign currency transaction loss of approximately $36 million[144] - A hypothetical 1% weakening of the U.S. dollar/pataca exchange rate would lead to a foreign currency transaction loss of approximately $56 million[144] - The company is exposed to interest rate risk associated with its long-term debt and foreign currency exchange rate risk from operations outside the United States[144] - The company does not hold or issue financial instruments for trading purposes and does not enter into speculative derivative transactions[144] - The company maintains a significant amount of operating funds in the same currencies as its obligations, reducing exposure to currency fluctuations[144]