The Sands Second Quarter 2024 Earnings Call began with an introduction from the operator and a welcome from Daniel Briggs, Senior Vice President of Investor Relations at Sands. The call contained forward-looking statements and discussed non-GAAP measures, with a focus on the Macau market, which saw a 24% growth in total gain revenues and a 29% growth in mass play revenue compared to the same quarter in 2023. The company remains confident in the future growth of the Macau market and believes it will exceed $30 billion next year and continue to grow. Their business strategy focuses on investing in high-quality assets and having scale, which has allowed them to compete effectively in the competitive Macau market. Their capital investment programs are designed to maintain their position as the market leader in the years to come.

The company's approach has allowed them to grow quickly and generate high returns on invested capital. Despite disruptions in Macau and ongoing construction in Singapore, the company delivered solid results and continues to lead in gaming and non-gaming revenue. They have a unique competitive advantage and expect even more growth upon completion of their investment programs. Macau EBITDA was $561 million, but would have been higher if not for lower-than-expected hold in the rolling segment. The company's margins were also impacted by the renovation of a London property.

The paragraph discusses the financial results and future plans for The Venetian and Marina Bay Sands casinos. It mentions expected margin improvement and EBITDA growth, as well as ongoing renovation projects and the reopening of the Londoner Grand Casino. The success of investments in high-quality products and high value tourism is highlighted, and the company's capital return program is mentioned as a way to increase returns for shareholders.

During the Q&A portion of the call, Joe Greff from JPMorgan asked about the performance of players and visitors in Singapore. Robert Goldstein, the speaker, stated that their customer base is diverse and includes visitors from various countries in the region, such as China, Vietnam, Japan, Korea, Indonesia, and Malaysia. He mentioned that they did not see any significant changes in visitation or spending from China, and that their business continues to grow despite construction challenges. He also mentioned that once construction is complete, they expect to see a significant increase in business.

The speaker discusses the potential impact of the Londoner Grand renovation on margins in Macau and provides updates on the company's development opportunities in various jurisdictions, including Thailand. They also mention their interest in expanding into new markets and their optimism about the future of the gaming industry in Singapore.

The speaker discusses the competitiveness of the Macau market and how their company has been successful through investment and non-gaming amenities. They also highlight the strong performance of their properties, even with the absence of certain amenities due to renovations. Overall, the speaker sees the company's $550 million in revenue for the quarter as a great result.

The speaker discusses the potential of the Londoner property in Macau, stating that it has proven successful and validated their investment. They anticipate even better results when the other half of the property opens later in the year. They mention the current success of the property and the potential for future margins to reach pre-pandemic levels. They also mention the competition and their confidence in having the best assets in the market. The only structural change needed is for the two most important assets to work together.

The speaker discusses the strategic plan for the Londoner and The Nation in Macau, which will result in over $2 billion in assets and potentially the highest EBITDA in the company's history. They also mention the strong performance of Parisian and Four Seasons, leading to a potential $3 billion in annualized EBITDA. The speaker expresses confidence in the success of the Londoner and the positive impact it will have on the company's overall performance and stock value. They also mention their commitment to capital return and potential stock repurchases.

The speaker discusses the company's focus on being shareholder-friendly and their goal to return cash flow to shareholders. They also mention their upcoming projects and potential impact of tariffs on the Chinese economy. They state that they do not know the exact impact of tariffs and hope to see improvement in the future.

The company is facing a big challenge with a lack of 2 million visitors quarter-on-quarter, and they are unsure of the impact of politics on their business. The biggest miss for the company is the loss of 8 million annualized business tools. The company plans to continue their share repurchase program and will discuss with the board when their current authorization is used up. A question is asked about the rooms out of service at Londoner and the potential for recapturing those customers in their existing portfolio.

Robert Goldstein and Kwan Chum discuss the impact of the ongoing renovations on the Sheraton side of the Macao properties. Despite the disruptions, the team has been successful in shifting patronage to other properties in the portfolio. However, there has been a decrease in base mass and cash hotel revenues due to the loss of rooms.

The paragraph discusses the impact of reduced inventory on the cash revenues and percentage margin of a hotel and casino property. The speaker estimates a $15-20 million impact on cash room sales due to the closure of a property and mentions that this is the fourth consecutive quarter with strong VIP hold in Singapore. The speaker suggests that there may be a need to change the metric for normalized hold in the future.

The speaker discusses how the world is changing and how this affects the percentage of bets in baccarat. They mention that they are considering adding more prop bets to increase the overall percentage and that the team believes the current percentage is understated. They also mention the impact of smart tables and changing game dynamics, and that they are close to making a decision on addressing this issue. The speaker concludes by stating that they are observing player behavior before making any decisions.

The company is aware of the significant changes in their game mix and is constantly evaluating and making adjustments as needed. They have seen a decrease in visitation recovery rate compared to pre-pandemic levels, with a bigger decline in the second quarter. This could be due to macro factors and is more prominent in areas outside of Guangzhou. They will continue to monitor the situation and make adjustments accordingly.

The base mass business was impacted this quarter, which affected the base mass segment. The market is always competitive and promotional, and there was possibly a higher promotional allowance or reinvestment. The shift in business between nonrated and rated play has changed the mix and margins for the company. The company is focused on increasing visitation and improving margins when premium mass play returns. They consider both reinvestment rates and the total business.

The speaker discusses the company's margin performance and competitive positioning, which they believe is strong despite fluctuations in reinvestment and business mix. They also mention that the closure of a casino and preparation for a new one have affected reinvestment. They plan to compete on the quality and scale of their assets once they are fully operational. The next question asks about quarterly volatility in Singapore and the speaker mentions previous events driving nongaming and VIP play, but does not provide specific guidance on seasonality for the rest of the year.

Patrick Dumont, the Chief Financial Officer of Las Vegas Sands, discusses the potential for increased nongaming and VIP business in Singapore due to upcoming events and the completion of renovations. He mentions that the second quarter is typically the slowest for the company, but with the completion of renovations, they expect to see continued growth in the market. The main event that will drive business is the Formula One race, but there are no other major events on the calendar at this time. The company is confident in the strength of the Singapore market and their ability to attract high-value tourism.

The speaker explains that the second quarter is typically weak in terms of seasonality, but Singapore is experiencing unprecedented success in the industry. They attribute this to events like F1 and Taylor Swift concerts, which bring in high-quality visitors. The speaker also discusses the potential impact of the recent ARR cut in China, stating that it could lead to increased spending in the third or fourth quarter, but it is difficult to predict the exact timing or economic factors that may influence this.

The speaker is unable to comment on the timing or specifics of economic growth in the [indiscernible] area, but they are hopeful that it will benefit their company. In response to a question about visitation, the speaker notes that there has been a slowdown in the recovery rate for non-Guangdong visitors, but premium segments and lower price points have performed well. However, the middle segment, specifically base mass tables, has not been as strong due to a lack of visitation.

The speaker discusses the reasons for the slow recovery of the visitation base and the increased disruption from renovation projects in the third quarter. They then address the issue of stock repurchases and how they consider various factors such as stock price, capabilities, and float when making decisions about investments for growth.

The company's main focus is on growing their business, and they are considering new jurisdictions for expansion. They recently sold a property in Las Vegas to reallocate capital for faster-growing markets. The company values their investment grade status and believes it gives them a strategic advantage. They also prioritize returning capital to shareholders through share repurchases and dividends. The company believes they have the financial capability to execute new projects and will balance growth with capital return.

The speaker discusses the positive impact of their company's major innovation projects in Singapore, including the Londoner and Tower 3. They anticipate being able to return more capital to shareholders and shrinking the share count as their business continues to grow. Despite subdued visitation, the existing CapEx in Singapore has already shown impressive results and they expect even better numbers once the entire building is complete in 2025. The speaker is confident in the success of their investments in Singapore.

The speaker discusses the strong performance of the casino business and the potential for continued growth in Singapore. They also mention upcoming renovations at the Venetian and possible renovations at other properties. Finally, they address the question of visitation numbers, stating that group visitation has been around 1.3 million visitors in May and June.

The speaker asks about the state of group markets in Macau and whether they have become too expensive for certain groups. The company responds by stating that this is a broader supply chain issue and that changes in consumer habits have affected group markets globally. They also mention that there have been positive policy announcements to boost visitation in the future, such as expanding the individual business scheme and relaxing visa restrictions. The government is monitoring the situation and has recently added 10 cities to the IVS scheme, which will increase the catchment area and potentially have a positive impact in the coming months.

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This summary was generated with AI and may contain some inaccuracies.