Macau casino operator Sands China Ltd expects to have the full room inventory of The Londoner Macao complex available by the May Golden Week holiday period, stated the company’s management on a conference call with investment analysts on Wednesday. It followed the fourth-quarter earnings announcement by the parent, Las Vegas Sands Corp.
Grant Chum, chief executive and president of Sands China, stated: “We expect the continued ramp-up in rooms [at The Londoner Macao (pictured)] to continue throughout the first quarter and the first part of the second quarter; the goal is to have the full 2,405 keys fully operational by May Golden Week and we believe we can achieve that.”
He added: “Construction-wise, we’re well on track. It’s a matter of statutory licensing at this point.”
Las Vegas Sands reported group-wide net revenue of US$2.90 billion in the final quarter of 2024, a decrease of 0.7 percent from the prior-year quarter. Net income for the reporting period was US$392 million, compared to US$469 million in fourth-quarter 2023.
Las Vegas Sands paid a quarterly dividend of US$0.20 per common share during the quarter.
The company announced that its annual dividend will increase to US$1 per share for the 2025 calendar year, with the next quarterly dividend of US$0.25 per share to be paid on February 19.
According to the group’s management, room inventory across its Macau portfolio “was at the low point” during the fourth quarter of 2024, negatively impacting the quarterly performance.
“Last quarter, it [room inventory] reached the lowest point, around 8,700 keys [available] in November and December,” observed Mr Chum, including 315 suites at the Londoner Grand hotel.
“Shortly after the year end, we got [licensed] for a further 700 suites and keys [at The Londoner Macao]. So, for this lunar new year, we have at our disposal just over 1,000 keys to use from now on,” added Mr Chum.
The executive also confirmed that a “new premium mass salon” on level one of the Londoner Grand opened “just around the time of the lunar new year,” as observed recently by GGRAsia.
“We’re obviously ramping up on the gaming side in sync with the room inventory,” stated Mr Chum.
Fourth-quarter net revenues for Sands China decreased 5.0 percent year-on-year to US$1.77 billion. Sands China’s net income stood at US$237 million in the three months to December 30, compared to US$288 million a year ago.
Adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) from the Macau business were US$571 million in the final quarter of 2024, down from US$654 million a year earlier.
EBITDA growth, Singapore
Speaking also on Wednesday, Patrick Dumont, president and chief operating officer of Las Vegas Sands, said: “We are nearing the completion of our Londoner Grand renovation programme. Upon completion, our competitive position will be stronger than ever. We expect meaningful EBITDA growth and margin expansion in the future.”
Investment bank JP Morgan said in a recent memo that it expects the Macau operations of Las Vegas Sands to achieve in 2025, property-level EBITDA of just above US$2.66 billion.
Las Vegas Sands also controls the Marina Bay Sands resort, one half of Singapore’s casino duopoly.
For Marina Bay Sands, the fourth quarter saw net revenues of just under US$1.14 billion, compared to US$1.06 billion in the prior-year period. Its adjusted property EBITDA for the three months to December 31 stood at US$537 million, compared with US$544 million a year ago.
Mr Dumont said the group would have “substantially completed” its US$1.75 billion reinvestment programme at Marina Bay Sands “by May of this year”.
He added: “We are still in the initial stages of realising the benefits of these new products.”
In mid-January, Las Vegas Sands said it would pay US$1 billion to the Singaporean authorities in return for changes to the expansion project for the Marina Bay Sands complex, a separate investment from the ongoing renovation programme.
The group had said in October it planned to spend US$8.0 billion to develop the second phase of Marina Bay Sands, comprising a fourth tower with over 570 rooms, additional casino space, a 15,000-seat arena, a sky roof, retail, restaurants, and space for meetings and exhibitions.
