Las Vegas Sands Corp: Fiscal Year 2023 Overview

Las Vegas Sands Corp. (LVSC) is a prominent developer, owner, and operator of integrated resorts and casinos. Headquartered in Las Vegas, Nevada, LVSC has a global presence with notable properties such as Marina Bay Sands in Singapore and multiple resorts in Macao, China, operated by its subsidiary, Sands China Ltd.

Financial Performance

LVSC’s shares trade on the New York Stock Exchange under the ticker symbol LVS and are included in the S&P 500 index. As of December 31, 2023, the company had 753,448,656 outstanding shares. The company had suspended its quarterly dividend program in April 2020 due to the COVID-19 pandemic but reinstated it on August 16, 2023, paying a dividend of $0.20 per common share. The dividend was again paid on November 15, 2023, and declared for January 2024, with payment made on February 14, 2024.

Revenue Breakdown

In the fiscal year 2023 (FY23), LVSC reported a significant revenue increase, reflecting the industry’s recovery post-pandemic. Net revenue is $10,372 million, up by 152.36% from FY22 ($4,110 million) and 144.97% from FY21 ($4,234 million).

• Total Operating Expense for FY23: $8,059 million, an increase of 64.40% from FY22 ($4,902 million) and 63.70% from FY21 ($4,923 million).
• Total Equity as of December 31, 2023: $4,104 million, a 12.25% increase from 2022 ($3,656 million) and 82.56% from 2021 ($2,248 million).
• Total Current Assets as of December 31, 2023: $5,777 million, surpassing Total Current Liabilities of $4,422 million by $1,355 million.

Legal and Regulatory Challenges

In 2016, LVSC settled with the Securities and Exchange Commission (SEC) for $9 million over violations of the Foreign Corrupt Practices Act (FCPA). The SEC alleged that LVSC failed to properly document or authorize millions of dollars in payments to a consultant in China and Macao.

In 2021, LVSC faced a lawsuit from its former partner, Asian American Entertainment Corporation, demanding $12,000 million in damages. The lawsuit claims 70% of LVSC’s profits in Macao from 2004 to 2022, alleging breach of contract regarding a casino license in Macao. The dispute dates back to 2001 when Sands and Asian American jointly applied for a gaming concession before LVSC switched partners to Hong Kong-based Galaxy Entertainment.

The Dominant Force in The Industry

On June 2, 2023, LVSC acquired the Nassau Coliseum with plans to secure a casino license from the State of New York. The company aims to develop and operate an integrated resort; however, obtaining the license is not guaranteed.

Las Vegas Sands Corp. remains a dominant force in the casino and resort industry, boasting significant revenue growth and strategic expansions. However, the company continues to navigate legal challenges and regulatory scrutiny. Investors and stakeholders will keenly observe how LVSC addresses these issues and capitalizes on new opportunities in the dynamic gaming and hospitality sectors.