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as Vegas Sands shared its third-quarter report on Wednesday, posting net revenue of $857 million, significantly up from $446 million in the prior-year quarter, while below pre-pandemic levels of $3.25 billion.
While pandemic-related restrictions and reduced visitation in Macau and Singapore continue to impact the operator’s financial results, the company was still able to generate positive EBITDA in each of the markets where it operates. However, figures remain well below 2019 levels as a new regulatory crackdown is set to be launched in China.
Despite the ambivalent current situation, the company remains “enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macau and Singapore,” said Robert G. Goldstein, chairman and chief executive officer.
Throughout the period, Las Vegas Sands faced an operating loss of $316 million, compared to $523 million in the prior-year quarter. Net loss from continuing operations in the third quarter of 2021 was $594 million, compared to $664 million in the third quarter of 2020. Consolidated adjusted property EBITDA was $47 million, compared to a $163 million loss in the prior year.
The company expects to benefit from an eventual recovery in travel and tourism spending across its markets. While demand for its offerings from customers who have been able to visit remains strong, pandemic-related travel restrictions in both Macau and Singapore “continue to limit visitation and hinder our current financial performance,” explained Goldstein.
Moreover, the company is also set to face upcoming changes in Macau’s gaming regulations, which cast doubt on the future operations of foreign companies in the enclave. The Chinese government is expected to crack down on gaming in the world’s largest gambling center.
The new legal revisions will include how many casino licenses will be allowed, how long will they last, and plans to send government representatives to directly supervise casino companies. It is also being considered allowing authorities to approve dividend distribution, as well as increasing local ownership of the gambling firms.
“Our industry-leading investments in our team members, our communities, and our market-leading Integrated Resort offerings position us exceedingly well to deliver growth as these travel restrictions eventually subside and the recovery comes to fruition,” further added optimistically the CEO.
”We are fortunate that our financial strength supports our investment and capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets.”
In March 2021, LVS completed the selling agreements for its Las Vegas real property and operations for approximately $6.25 billion. The transaction is expected to be completed “in the first quarter of 2022.”
