LVS earnings focus to be on Singapore recovery, Macau cash burn

July 20, 2022 Macau Earnings & Filings Industry Updates

Las Vegas Sands (LVS) will kick off the 2Q22 earnings season for Macau-linked operators on Wednesday, with the consensus forecast being for the operator to post a loss of $0.23 per share, narrowing slightly from a loss of $0.26 in the same period a year ago.

According to Zacks, revenue is likely to be around $954 million, a decline of more than 18 percent from the prior year as a recovery in Singapore fails to offset the dismal performance in Macau. The firm points out that the group’s 1Q22 results were a major negative surprise, falling some 66.6 percent below consensus forecasts. It has missed analysts’ forecasts in three out of the past four earnings reports.

Unlike its rival U.S. operators in Macau, LVS no longer has the benefit of U.S. operations, where revenue has surged to above pre-Covid levels, to cushion its bottom line. The company announced it was selling its Las Vegas operations in March last year for $6.25 billion to explore other opportunities, in particular in Asia.

The company owns Hong Kong-listed Sands China, which has the largest footprint in Macau, and owns the iconic Marina Bay Sands in Singapore. It has been slower than its peers in moving into the online gaming space, due to well-documented opposition from founder Sheldon Adelson, who died at the beginning of last year.