In a recent earnings call for the first quarter of 2022, Las Vegas Sands Corp. indicated that they will be primarily focusing on new developments in Asia and the U.S., as Covid-19 uncertainties continue to hamper their Macau properties.
The company reported net revenues of just over $940 million, down from the $1.2 billion figure that was reported at the same time last year. Operating losses, on the other hand, went up from $96 million to $302 million year over year.
Sands CEO Robert Goldstein said during the call that the company’s results “continue to reflect the pandemic’s impact.” Goldstein also noted that LVS was primarily focused on new large-scale developments in Singapore as well as burgeoning U.S. markets such as Texas, New York and Florida.
The company’s Marina Bay Sands property in Singapore has been their top-producing location in 2022 thus far, and Goldstein affirmed that LVS is “open for business in Singapore and our long-term opportunities remain steadfast.” Recent updates to local vaccination requirements have injected a large amount of international traffic to the area over the last few months.
As far as the U.S. market is concerned, Sands is setting its sights on new development opportunities after selling off their Las Vegas-based assets to Vici Properties and Apollo Global Management for a combined $6.25 billion last March.
The possibility of a New York expansion is particularly attractive, as Goldstein said that the area is “a huge market for us” that has “been on the radar for a long time.” Overall, optimism remains high despite the fact that the process is still just beginning.
Florida, on the other hand, does not appear to be a viable option for expansion, after a failed petition to amend the state’s constitution to allow gaming expansion. LVS said that this doesn’t totally eliminate the possibility of moving to the state, but there are limited opportunities given the sizable investments they are looking to make.
“There’s a lot of potential and we’re waiting to see which ones come forward where we can invest and get the highest return,” Sands COO Patrick Dumont said during the call. Overall, Dumont reiterated that LVS was “focused very much on building rather than buying,” and that the company has “a history of being a platform of development and entrepreneurship.”
After Sands announced its Las Vegas exodus last year, the intention was to place an added emphasis on their Macau investments, but according to Goldstein, the market “is in a difficult place right now,” which has forced the gaming powerhouse to shift their focus again to keep up with the evolving market.
Sands China president Wilfred Wong was also present on the call, and he told investors that the company hopes to clear some bureaucratic hurdles before the end of 2022 that will significantly help business in the area.
