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Las Vegas Sands Corp LVS Stock Quote

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Morningstar‘s Stock Analysis LVS

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Macao Demand Set to Wake Up With Planned Easing of Restrictions; Near-Term Still Highly Uncertain

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

Our forecast for a Macao demand recovery starting in November after China’s Communist party convention in October gathered momentum this past weekend, with the region planning to reinstate group and eVisa travel for mainland China (around 70% of prepandemic Macao visits) as early as late October. This would prove to be a material step forward in Macao’s recovery, with near-term targets to at least double visitation from recent levels to 40,000 per day. Given 2019 averaged about 110,000 visits per day, we think achieving this target could translate to Macao gross gaming revenue, or GGR, reaching 40% of prepandemic marks as soon as November. This would align with our 40%-50% level forecast for the final two months of 2022. As a result, we plan to maintain our 2022 Macao industry GGR forecast at low- to mid-20s of 2019’s level. Meanwhile, government leadership set a goal for at least 80,000 daily visits in the medium term, which we believe can equate to industry GGR of more than 70% of 2019’s amount. With the medium term undefined, we think our industry GGR 2023 forecast of about 60% of prepandemic levels with a full recovery toward the end of 2024 is still reachable at this juncture.

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Key Statistics LVS

Company Profile LVS

Business Description

Las Vegas Sands is the world's largest operator of fully integrated resorts, featuring casino, hotel, entertainment, food and beverage, retail, and convention center operations. The company owns the Venetian Macao, Sands Macao, Londoner, Four Seasons Hotel Macao, and Parisian in Macao, and the Marina Bay Sands resort in Singapore. Its Venetian and Palazzo Las Vegas in the U.S. asets were sold to Apollo and VICI for $6.25 billion in 2022. We expect Sands to open a fourth tower in Singapore in 2026. After the sale of its Vegas assets, the company will generate all its EBITDA from Asia, with its casino operations generating the majority of sales.

Contact
3355 Las Vegas Boulevard South
Las Vegas, NV, 89109
T +1 702 923-9000
Industry Resorts & Casinos
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 44,700

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