5 Takeaways From A Sit-Down With Las Vegas Sands Management

Las Vegas Sands Corp. LVS management discussed both Macau and Singapore during Bernstein's 3rd Annual Consumer Summit. Analyst Vitaly Umansky mentioned five takeaways from the discussions.

Top Takeaways

1. Recovery in Mass in Macau: This has been driven by higher visitation, lengthening stays and increased spending. Management projected high-single-digit to low-double-digit growth in the Macau Mass market. Hotel rooms on weekends and holidays continue to be a bottleneck.
2. Casino operators exhibit more cost discipline: Casino operators continue to be cost conscious and disciplined in their player reinvestment. “One of the most important things to focus on is for the six operators to work together to increase the size of the overall market, bringing more people to Macau and increasing Macau’s appeal,” Umansky wrote.
3. Decline in VIP demand: Management projected a potential decline in VIP demand in Macau going ahead due to increased transparency. “Sands is willing to be involved in VIP either through premium direct or through junkets,” Umansky added.
4. Singapore growth focus: This is critical and the company is trying to drive growth at Marina Bay Sands. Mall monetization may occur if there is a need for capital. Although the Marina Bay Sands voucher program has been in place for the past couple of years, it has recently received renewed attention due to the Union Pay changes in Macau.
5. Japan opportunity: The company believes the Japan market has strong potential and is willing to invest in the country. The Japan investment would be done through LVS, and not Sands China, the analyst mentioned.