Travel restrictions in Macau continued to weigh on profits at Las Vegas Sands Corp., but resilience in Singapore made company officials optimistic as they reported third-quarter results on Wednesday.
The company reported a net loss of $239 million, 31 cents per share, on revenue of $1 billion for the quarter that ended Sept. 30. A year earlier, the company posted a net loss of $368 million, 48 cents per share, on revenue. of $857 million.
In a report to investors, Deutsche Bank analyst Carlo Santarelli noted the disparity: Sands’ operations in Macau generated casino revenue of $250 million in the third quarter, compared to $609 million in 2021. But Marina Bay Sands, the company’s flagship resort in Singapore, generated $756 million this year compared to $249 million last year.
“While travel restrictions continued to impact our financial results this quarter, we were pleased to see further progress in Singapore’s recovery with Marina Bay Sands reaching $343 million in adjusted real estate cash flow. “said Rob Goldstein, Chairman and CEO of Sands. “We remain excited to welcome more guests to our properties as more visitors can travel to Singapore and Macau.”
Travel restrictions imposed by China’s central government in response to the COVID-19 pandemic have affected Sands, the market leader in Macau, and all other operators in the special administrative region.
Goldstein said the company would wait for visitors to return to Macau, where it maintains a high level of confidence that visits will eventually return to pre-pandemic levels.
During the conference call with investors, Goldstein said the company’s bid for a license in New York would be a “dogfight.”
“We’ve always been focused on the market for many years,” he said of the company’s New York offering. “We have properties that we are in the process of setting up at the moment. We are very bullish on New York as a market. It’s tough, because I think it’s going to be a dogfight, and hopefully we’ll have an offer that will catch the eye.
He expects the RFPs to be accepted by the New York Gaming Commission by January with a decision made on awarding three casino licenses in 2023.
Sands reportedly has a proposal involving New York Mets owner Steven Cohen for a site near Citi Field, the stadium where the Mets play. The company has not commented on Citi Field’s proposal.
Sands would have competition from no less than eight other casino companies.
Proposals include Resorts World New York City in Queens, owned by Malaysia-based Genting Group, and Empire City Casino, offered by MGM Resorts International. These properties would be located on existing racetracks and would have the advantage of being able to open more quickly.
Other potential bidders include Wynn Resorts Ltd., which is partnering with Related Cos. to develop Western Yards at Hudson Yards near the Javits Center convention center, and Hard Rock International, the casino company owned by the Florida-based Seminole Indian tribe that wants to build a casino near Times Square. There’s also Bally’s Corp., Rush Street Gaming, UE Resorts International Inc., and the Water Club.
Shares of Las Vegas Sands, traded on the New York Stock Exchange, fell 25 cents, 0.7%, to $35.60 per share on above-average volume. After hours, shares fell another 10 cents, 0.28%, to $35.50 per share.
The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Patrick Dumont, president and chief operating officer of Las Vegas Sands.