Las Vegas Sands Corp. 2026 Q3 Earnings Call

Thank you. Joining the call today are Patrick Dumont, our Chairman and Chief Executive Officer, Dr. Wilfred Wong, Executive Vice Chairman of Sands China, and Grant Chum, CEO and President of Sands China and EVP of Asia Operations. Today's conference call will contain forward-looking statements. We will be making those statements under the safe harbor provision of federal securities laws. The language on forward-looking statements included in our press release also applies to our comments made on the call today. The company's actual results may differ materially from the results reflected in those forward-looking statements. In addition, we will discuss non-GAAP measures. Reconciliations to the most comparable GAAP financial measure are included in our press release. We have posted an earnings presentation on our website. We will refer to that presentation during the call.

Finally, for the Q&A session, we ask those with interest to please pose one question and one follow-up, so we might allow everyone with interest the opportunity to participate. This presentation is being recorded. I will now turn the call over to Patrick.

Thanks, Dan. Good afternoon. Thank you for joining the call. I wanted to start with a few summary points. We remain confident in our long-term strategy in both Singapore and Macao, and we will continue to invest for future growth. We have a long-term view on economic growth in Asia. We believe the trends of economic growth and wealth creation will continue into the future. Our goal is to position our property portfolio to capitalize on a growing demand of premium travel and world-class entertainment experiences in Asia. We are fortunate to have the balance sheet and cash flow strength to support our meaningful capital investment program. Turning to our quarterly results, the high-end was softer in both of our markets this quarter, which negatively impacted our reported financial results.

Despite this, we delivered strong financial results at Marina Bay Sands in Singapore, generating an EBITDA of $590 million for the quarter. If we had held as expected our rolling play, our EBITDA would have been $4 million higher or $594 million. Singapore remains an ideal market for high-value tourism. Our focus on creating unique and memorable entertainment and hospitality experience for our customers continues to generate industry-leading financial performance. We believe that growth in tourism in Singapore will continue over the long term. Our financial results continue to reflect the elevation of Marina Bay Sands' structural earnings power following our significant product investments, suite renovations, service enhancements, and the execution of our premium customer strategy. Looking further ahead, we remain enthusiastic about the additional growth opportunities presented by our new development project in Singapore, which will be directly adjacent to Marina Bay Sands.

It will meaningfully increase our premium suite capacity, service and entertainment offerings, and will include the introduction of a state-of-the-art arena envisioned to be the finest in Asia. We remain on track with the development process and look forward to opening our new development in early 2031, subject to the required government approvals. Let's turn to Macao. We delivered $529 million of EBITDA for the quarter. If we had held as expected in our rolling play, our EBITDA would have been $11 million lower or $518 million. Sands China's growth in gaming revenues and volumes meaningfully outperformed the Macao market overall. We are encouraged by our progress there. Our market share of Macao mass gaming revenue reached 26.1% for the quarter, our strongest performance since the fourth quarter of 2023. When compared to the third quarter of 2025, we delivered growth in gaming volumes across all segments.

Rolling volume was up 31% year-over-year. Our non-rolling drop was up 11% year-over-year, and slot ETG handle was up 26% year-over-year. We believe these improvements are indicative of our progress in product and service level improvements. I would also like to highlight our approach to reinvestment in Macao has remained consistent over the last several quarters. Our goal is to remain consistent with our reinvestment strategy going forward and to achieve greater profitability as revenues grow in the future. With respect to operating expenses, as we mentioned last quarter, we have elected over the last year to invest in additional table operating hours, increased sales, marketing and customer service personnel, and enhanced levels of customer service. We continue to believe these investments are critical to the achievement of our long-term objectives.

These objectives are providing outstanding service and hospitality to our customers and creating unique and memorable experiences. We are continuing to invest in Macao, and we are focused on the highest return projects over the next three years to create the best opportunities to increase cash flow. Through our capital investment program, we are reorienting our Macao portfolio to address the most profitable segments. The renovation of The Venetian, which commenced in March, is progressing. We expect to have The Venetian refreshed and reintroduced by Chinese New Year 2028, along with new premium-focused gaming salons and related amenities. Macao remains the largest gaming market in the world, and we believe the market will grow and reach new heights in the years ahead.

We retain our goal of reaching $700 million in quarterly EBITDA and more over time as we fully implement our investment and operating strategies and as the Macao market grows in the future. Regarding our programs returning capital to shareholders, we repurchased $950 million of LVS stock during the quarter. We have now repurchased 19% of the company's outstanding shares over the last 12 quarters. We have approximately $5 billion remaining on the $6 billion repurchases authorization from our board approved in July. We believe additional repurchases of LVS equity through our share repurchase program will be meaningfully accretive to the company and its shareholders over the long term. We also paid our recurring quarterly dividend of $0.30 per share during the quarter. In addition, our board has approved a 20% increase in our quarterly dividend to $0.36 per share, beginning the first quarter of 2027.

We also purchased additional shares of SCL during the quarter. The company's ownership percentage of SCL has reached 75.6% as of September 30, 2026. We look forward to continuing to utilize the company's share repurchase and recurring dividend programs to increase returns to shareholders. Thanks again for joining the call today and for your interest in the company. Now let's take some questions.

Thanks. Yeah. First off, I do want to point out that there was softness at the high end in both of our markets.

That was really the story for the quarter for us. I think we made a lot of strides in the things that we were trying to improve and create better experience for our customers. But when the customers don't show up, it's a little problematic. I think to sort of address your question, in terms of Asia macro, there are a bunch of things going on globally that may have an impact on tourism visitation, how people think about tourism or just their spending during the quarter. I also want to point out that the World Cup final was July 19, so that did happen. There are many things in the global environment generally that create a lot of uncertainty in the quarter.