Posted on: July 21, 2022, 11:59h.
Last updated on: July 21, 2022, 01:00h.
Las Vegas Sands (LVS) reported decreased net revenue and increased operating losses in its second-quarter 2022 report released Wednesday. The company blamed pandemic-related restrictions, particularly in Macao and Singapore, its outposts in Asia.
Net revenue fell from $1.17 billion in the second quarter of 2021 to $1.05 billion in this year’s second quarter, with Sands China’s falling from $849 million to $368 million over the same period. Operating loss rose from $139 million to $147 million, and net loss from continuing operations rose from $280 million to $414 million, with Sands China’s net loss rising from $166 million to $422 million.
“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,” read a statement from LVS chair/CEO Robert G. Goldstein. “While pandemic-related restrictions continued to impact our financial results this quarter, we were pleased to see the recovery in Singapore accelerate during the quarter, with Marina Bay Sands delivering $319 million in adjusted property EBITDA (earnings before interest, taxes, depreciation, and amortization).”
Second-quarter 2022 capital expenditures totaled $198 million, including construction, development, and maintenance activities of $97 million at Marina Bay Sands, $67 million in Macau, and $34 million in corporate and other expenses. Consolidated adjusted property EBITDA was $209 million, compared to $244 million in the prior-year quarter.
“Our industry-leading investments in our team members, communities, and integrated-resort portfolio position us exceedingly well to deliver future growth as travel restrictions subside and the recovery comes to fruition,” Goldstein’s statement read. “We remain enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to both Singapore and Macao.”
LVS reported Q2 2002 income-tax expense of $110 million, compared to a benefit of $6 million in the prior-year quarter. LV Sands said the income-tax expense was driven primarily by a 17% statutory rate on the increased profits of LVS’ Singapore operations.
Unrestricted cash balances as of June 30 were $6.45 billion. LVS has access to $2.96 billion, available for borrowing under revolving credit facilities in the U.S., China, and Singapore, the company said, net of outstanding letters of credit.
As of June 30, total debt outstanding, excluding finance leases and financed purchases, was $15.35 billion.