LVS 3Q net income dips 27pct y-o-y, board ups 2027 dividend by 20pct

Third-quarter net income attributable to casino group Las Vegas Sands Corp (LVS) fell 27.4 percent year-on-year, to US$304 million from US$419 million, according to a Wednesday company filing in the United States. That was on net revenues that slipped 3.5 percent from the prior-year quarter, to just under US$3.22 billion. Group-wide third-quarter adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) were just under US$1.12 billion, down 16.7 percent year-on-year. Group-wide operating income slipped 14.0 percent from the prior-year quarter, to US$618 million. The company said in a Wednesday press release that its board had announced a 20-percent increase in Las Vegas Sands’ recurring common stock dividend for the 2027 calendar year, raising the annual dividend to US$1.44 per share, i.e., US$0.36 per share per quarter. Las Vegas Sands runs casinos on Macau via Sands China Ltd, and also operates the Marina Bay Sands casino resort in Singapore via the parent’s subsidiary Marina Bay Sands Pte Ltd. Group-wide casino revenue fell 5.4 percent year-on-year in the three months to September 30, at US$2.37 billion. Net revenues from Macau operations rose 1.8 percent year-on-year, to US$1.94 billion, from just under US$1.91 billion in the third quarter 2025. The parent noted however that its Macau mass-segment gross gaming revenue (GGR) market share was 26.1 percent for the three months, “the highest result since fourth quarter 2023”. Macau quarterly adjusted property EBITDA slipped 12.0 percent year-on-year, to US$529 million. Nonetheless the parent said in an earnings deck that higher hold on rolling play in Macau “positively impacted adjusted property EBITDA by US$11 million”. Third-quarter net revenues from The Londoner Macao were higher than from The Venetian Macao. The latter’s fell 6.2 percent to US$649 million, while The Londoner Macao’s were flat, at US$685 million. Singapore premium ‘softer’ Third quarter net revenues at Marina Bay Sands were just over US$1.29 billion, down 9.9 percent year-on-year. Singapore quarterly adjusted property EBITDA were US$590, down 12.0 percent from a year earlier. “The high end of the premium gaming segment was softer during the quarter” in Singapore, said the firm in an earnings presentation. “Lower hold on rolling play negatively impacted adjusted property EBITDA by US$4 million” at Marina Bay Sands, the parent added. Patrick Dumont, group chairman and chief executive, was bullish overall, in a press release issued with the results. He stated: “We remain confident in our long-term strategy in both Singapore and Macao and will continue to invest in future growth.” Mr Dumont added: “We are fortunate to have the balance sheet and cash flow strength to support our meaningful capital investment programmes, positioning our portfolio of properties to capitalise on the growing demand for premium travel and world-class entertainment experiences in the region.” The group’s unrestricted cash balances as of September 30 were US$2.86 billion, per the press release. “We continued to execute our strategic objectives during the quarter in both Singapore and Macau while increasing the return of capital to shareholders, including through the repurchase of US$950 million of our common stock during the quarter,” noted Mr Dumont. During the third quarter, the parent purchased 62 million shares of Sands China common stock for HKD793 million – approximately US$101 million at exchange rates in effect at the time of the transactions – increasing Las Vegas Sands’ ownership of Sands China to 75.56 percent as of September 30. The parent paid a quarterly dividend of US$0.30 per common share during the quarter. Its next quarterly dividend of US$0.30 per common share will be on November 10, to Las Vegas Sands stockholders of record as of November 2. As of September 30, total debt outstanding, net of deferred offering costs and original issue discounts, excluding finance leases, was US$15.30 billion. Third-quarter capital expenditure totalled US$281 million, including US$154 million on construction, development and maintenance in Macau, a further US$121 million at Marina Bay Sands, and US$6 million on “corporate and other” costs. The earnings deck noted regarding the Marina Bay Sands expansion project: “While the company is contractually obligated to complete the… project by July 2029, the current estimate is that construction will be complete in June 2030 with an anticipated opening date in January 2031. “Any extension of the completion date beyond July 2029 is subject to the approval of the Singapore government.” That was the same language used previously by the company.