Underperformance in Macau operations being addressed by Las Vegas Sands Corp.
Las Vegas Sands Boosts Macau Operations and Aims for $2.7 Billion EBITDA by 2027
Las Vegas Sands (LVS) is making significant strides in its efforts to improve market share and EBITDA in Macau. The company is investing heavily in the region, with a $175 million expansion project as part of a balanced investment approach aimed at both near-term returns and long-term value creation.
The focus on premium segments and operational efficiency is evident in the 45% revenue surge at The Londoner Macao, which has contributed to a reported 19% increase in Q2 2025 gaming revenue and $566 million EBITDA in Macau. This premium focus supports higher-margin gaming and hospitality offerings, a key factor in the 8% growth in mass gaming revenue during the quarter.
In a bid to boost market share, LVS has shifted from underinvestment in customer reinvestment to a more aggressive approach. Grant Chum, CEO of Sands China, started a more aggressive customer reinvestment program in April, with a focus on events, promotions, and improved product offerings.
To enhance shareholder value, LVS is deploying a disciplined capital allocation strategy, including an $800 million stock repurchase program. The goal is to reach a $2.7 billion annual EBITDA run rate in Macau by 2027, contingent on continued reinvestment and effective navigation of market risks.
The performance of properties in Macau has shown improvement, with Grant Chum reporting better results from May to June. He also sees opportunities to perform better at smaller properties in Macau. All 2,450 suites and rooms at the properties in Macau were available in the last two months of the second quarter.
In Singapore, the Marina Bay Sands is projected to earn $2.5 billion for the full year. The property earned $768 million in adjusted earnings for the second quarter, with mass gaming up 97% since the second quarter of 2019 and more than 40% since the second quarter of 2024. The Marina Bay Sands' margins hit 55.3%.
However, EBITDA in Singapore would have been $107 million lower if the hold went as expected, according to Patrick Dumont, President and Chief Operating Officer. Despite this, Dumont reiterated the intention to drive better improvements and recapture market share in the coming quarters in Macau.
Rob Goldstein, Chairman and CEO of Las Vegas Sands, acknowledged that the properties in Macau underperformed. However, he expressed optimism about the future, stating, "We are committed to Macau, and we are confident in our ability to navigate the current market dynamics and deliver long-term value for our shareholders."
In summary, LVS's strategies in Macau include aggressive reinvestment in operations and expansion projects, a focus on premium gaming and hospitality segments to drive revenue and operating margin, enhanced customer engagement and promotional activities to capture market share, disciplined capital allocation, including stock buybacks to enhance shareholder value, and a long-term goal of significantly increasing Macau EBITDA by 2027. These efforts underpin LVS's strategic turnaround in Macau amid increasing competition and evolving market dynamics.
- Las Vegas Sands is also investing in the banking-and-insurance and real-estate sectors, as part of their broader strategy to create long-term value and expand their business portfolio.
- To further boost their operations and market share, Las Vegas Sands might consider strategic alliances or partnerships with other key players within the finance or insurance industries.
- As a complement to their focus on premium gaming and hospitality, Las Vegas Sands could potentially explore opportunities in the investment sector, aiming to provide unique experiences that cater to their high-end clientele and generate additional revenue streams.
