Las Vegas Sands misses Q2 estimates as World Cup, low hold weigh on results

Las Vegas Sands Corp. reported second-quarter revenue of $3.15 billion and adjusted earnings of $0.59 a share, missing consensus estimates by $160 million and $0.17 respectively, as the World Cup disrupted high-value travel and an unusually low hold rate weighed on Macau results.

"The results this quarter reinforce our view that Marina Bay Sands' structural earnings power has been elevated," Chairman and Chief Executive Officer Patrick Dumont said on the earnings call. "If we had held as expected in our rolling play, our EBITDA would have been $37 million lower, or $652 million."

Marina Bay Sands generated $689 million in property EBITDA, with mass gaming revenue rising 5% from a year earlier despite softer tourism demand. In Macau, Sands China posted $430 million in EBITDA, dragged down by a VIP rolling hold of 1.35% — the lowest in the company's history in the market. On a hold-adjusted basis, Macau EBITDA would have been $517 million. Sands China's mass gross gaming revenue grew 8% year over year, double the broader market's 4% expansion, while rolling chip volume surged 73%.

The miss comes as the company invests heavily in product upgrades and service enhancements across both markets. In Macau, the renovation of all 2,900 rooms and suites at The Venetian is underway, with completion targeted by Chinese New Year 2028. At Marina Bay Sands, an expansion that will add premium suite capacity and a new arena remains on track for an early 2031 opening. LVS repurchased $787 million of its stock during the quarter and the board authorized a new $6 billion buyback program. The stock fell 4.97% in after-hours trading to $43.00.

The results underscore the near-term headwinds facing LVS, but management maintained its target of reaching $700 million in quarterly EBITDA in Macau over time as product upgrades and service improvements take hold. Investors will watch for a rebound in high-value visitation following the World Cup and for progress on the Venetian renovation, which is expected to begin contributing incremental suite inventory through 2027.

This article is for informational purposes only and does not constitute investment advice.