Earnings call· Sep 2025(Q3 FY25)

LAS VEGAS SANDS CORP LVS

Oct 22, 2025 Source

Executive summary

Las Vegas Sands Q3 FY25 — Record Marina Bay Sands Performance and Enhanced Shareholder Returns

Las Vegas Sands reported a robust quarter driven by record performance at Marina Bay Sands, which continues to exceed expectations with strong mass gaming and slot win. While Macao showed improvement with increased market share and adjusted marketing strategies, the company acknowledges past underperformance and ongoing competitive intensity. Management remains committed to shareholder returns through increased dividends and share repurchases, while strategically evaluating future growth opportunities.

Highlights

5

Marina Bay Sands (MBS) delivered record EBITDA of $743 million, exceeding the annual forecast of $2.5 billion and on track to exceed $2.7 billion-$2.9 billion for FY25.
MBS mass gaming and slot win was a record $905 million, reflecting 122% growth from Q3 2019 and 35% higher than last year.
Macao EBITDA improved to $601 million (or $620 million adjusted for typhoon impact), with mass market revenue share increasing to 25.4% from 23.6% in Q1 FY25.
The company increased its quarterly dividend by 20% to $0.30 per share for CY26, totaling $1.20 per share annually.
Repurchased $500 million of LVS stock and $337 million of SCL stock during the quarter, increasing SCL ownership to 74.76%.

Concerns

3

Macao EBITDA was negatively impacted by a typhoon by about $20 million.
The Macao portfolio's adjusted EBITDA margin was 31.5%, down 160 basis points compared to Q3 2024, due to higher reinvestment rates and costs.
The company acknowledged underperformance in the Macao market for the past few years, particularly in its Parisian and Sands properties.

Guidance & targets

6

Category	Target	Timeline	Confidence
Marina Bay Sands Annual EBITDA	easily exceed $2.5 billion high materiality	FY25	High
Marina Bay Sands Annual EBITDA	$2.7 billion, $2.8 billion, $2.9 billion high materiality	FY25	Medium
Londoner (Macao) Annual EBITDA	$1-plus billion medium materiality	future	Medium
Quarterly Dividend	$0.30 per share per quarter high materiality	CY26	High
Annual Dividend	$1.20 per share per year high materiality	CY26	High
Macao Market GGR	$33 billion, $34 billion high materiality	next year · CY26	Medium

Segment performance

4

Segment	Revenue	YoY	QoQ	Margin
Marina Bay Sands (Singapore) Delivered record performance, with EBITDA of $743 million and a margin of 51.7%. Mass gaming and slot win reached a record $905 million. Adjusted for expected hold, EBITDA would have been $786 million. Management believes it is still in the initial stages of realizing benefits from investments. EBITDA: $743 millionMass gaming and slot win: $905 millionMass gaming and slot win growth from Q3 2019: 122%Mass gaming and slot win growth YoY: 35%Adjusted EBITDA (for expected hold): $786 million	—	—	—	51.7%
Macao Portfolio Delivered $601 million EBITDA, which would have been $620 million when adjusted for a $20 million typhoon impact. The adjusted EBITDA margin was 31.5%, down 160 basis points compared to Q3 2024. Mass market revenue share increased to 25.4% from 23.6% in Q1 FY25, indicating improved competitiveness after strategic changes. EBITDA: $601 millionAdjusted EBITDA (for typhoon impact): $620 millionAdjusted EBITDA margin: 31.5%Adjusted EBITDA margin YoY change: down 160 bpsMass market revenue share: 25.4%	—	—	—	—
Venetian (Macao) Reported a margin of 35%.	—	—	—	35%
Londoner (Macao) Reported a margin of 31.9%. The property is moving towards $1-plus billion of EBITDA and has benefited from the full deployment of Londoner Grand rooms and suites.	—	—	—	31.9%

Operational metrics

20

Marina Bay Sands EBITDA (annualized)

$2.1 billion

YTD FY25

Current run-rate with a quarter still to go in FY25.

Marina Bay Sands EBITDA (annualized)

$1.6 billion

pre-COVID

Historical EBITDA level before the COVID-19 pandemic.

Marina Bay Sands EBITDA (annualized)

$2.78 billion

post-COVID

Current estimated run-rate post-COVID, based on management's commentary.

Baccarat Theoretical Hold Percentage

4.2%

Q3 FY25

New theoretical hold percentage for VIP rolling baccarat in Singapore.

Baccarat Theoretical Hold Percentage

2.85%

historical

Historical baccarat hold percentage before the prevalence of side bets.

Baccarat Theoretical Hold Percentage

4.1%

Q3 FY25

Smart tables indicate this hold percentage for VIP rolling baccarat.

Baccarat Theoretical Hold Percentage

5.1%

quarterly fluctuation

Potential high end of quarterly fluctuation based on player betting preferences.

Baccarat Theoretical Hold Percentage

3.8%

quarterly fluctuation

Potential low end of quarterly fluctuation based on player betting preferences.

Macao Mass Market Revenue Share

25.4%up from 23.6% in Q1 FY25

Q3 FY25

Increased mass market revenue share in Macao due to adapted marketing strategies.

Macao Mass Market Revenue Share

23.6%

Q1 FY25

Baseline mass market revenue share in Macao at the beginning of the fiscal year.

Macao Portfolio Adjusted EBITDA Margin

31.5%down 160 bps compared to Q3 2024

Q3 FY25

EBITDA margin for the Macao portfolio after adjusting for hold, showing a decline year-over-year.

LVS Stock Repurchase

$500 million

Q3 FY25

Amount of LVS stock repurchased during the quarter.

SCL Stock Purchase

$337 million

Q3 FY25

Amount of SCL stock purchased during Q3 and in July.

SCL Ownership Percentage

74.76%

as of call date

Company's ownership percentage of Sands China Ltd., nearing the 75% limit.

Macao Base Mass Growth

18%

YoY

Year-over-year growth in base mass, partially reflecting the prior year's casino closure.

Macao Base Mass Growth

7%

QoQ

Sequential growth in base mass.

Macao Premium Mass Growth

11%

QoQ

Sequential growth in premium mass, outpacing base mass.

Macao GGR Growth

7-9%

October YoY

Estimated year-over-year growth for the Macao market in October.

Macao VIP Segment Share

12-15%

ongoing

Typical share of overall GGR for the VIP segment in Macao, which remains low margin.

Marina Bay Sands EBITDA (quarterly)

$700 million

Q3 FY25

Refers to the quarterly EBITDA performance, noting back-to-back quarters at this level.

Risks & headwinds

4

Typhoon Impact on Macao EBITDAQ3 FY25

$20 million negative impact

Macao Market Underperformancepast few years

Underperformed for the past few years, particularly in Parisian and Sands properties.

Mitigation: Adapted marketing strategies and targeted incentives in Q2 FY25; focused on improving weak links in the portfolio.

Macao Competitive Intensityongoing

Competition remains intense.

Mitigation: Committed to staying 'ultracompetitive' and constantly adapting to market changes with appropriate offers.

Dependency on Macao Market Growthnext year and beyond

Requires overall market GGR growth (e.g., $33 billion-$34 billion for next year) to achieve target EBITDA.

Mitigation: Focus on leveraging assets and new marketing programs to capitalize on market growth.

What to watch in Q4 FY25

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Macao Mass Market Share Improvement

Q4 FY25 and beyond

Current25.4% mass market share

TargetContinued share gains

Why it matters

Key to achieving Macao's target EBITDA and leveraging assets, indicating the effectiveness of new marketing strategies.

Our mass market revenue jumped to 25.4% this quarter, up from 23.6% in the first quarter of 2025. We expect additional share gains and EBITDA growth in the fourth quarter.

Q&A highlights

10

Why was the VIP hold rate raised to 4.2% and is there potential to raise the mass hold rate, given it's also increasing?

The 4.2% VIP hold rate is due to a new methodology enabled by smart tables, which accurately measure customer preference for higher volatility side bets. Mass hold is not normalized due to game mix and volume, and the focus is on rolling programs due to their volatility.

“it's much more meaningful to deal with the rolling program because of the volatility of the hold in that segment.”

asked by Dan Politzer · answered by Patrick Dumont

2 min read6 chapters

Detailed Narrative

01

Marina Bay Sands Performance Drivers and Baccarat Evolution

Marina Bay Sands' record performance is attributed to high-quality investment, market-leading product, and growth in high-value tourism. The introduction of smart tables for rolling baccarat has enabled a new methodology for theoretical hold percentage, revealing a higher effective hold rate. This higher hold is driven by customer preference for higher volatility side bets, which have significantly evolved the baccarat game beyond its historical 2.85% hold, making it more dynamic and profitable for the house.

02

Macao Market Adaptation and Competitive Strategy

After underperforming for several years, LVS adapted its approach in Macao in Q2 FY25, focusing on competitive marketing and targeted incentives. This led to an increase in mass market revenue share to 25.4% from 23.6% in Q1 FY25, with expected continued improvement in Q4 and beyond. Management emphasizes the need for overall market GGR growth to achieve its Macao EBITDA targets, acknowledging intense competition and the need for continuous adaptation.

03

Capital Allocation and Shareholder Returns

The company maintains a shareholder-friendly capital allocation strategy, prioritizing high-return growth investments and returning capital through prudent dividends and share repurchases when investment opportunities are not available. During the quarter, LVS repurchased $500 million of its own stock and $337 million of SCL stock, increasing its SCL ownership to 74.76%. The Board approved a 20% increase in the quarterly dividend for CY26 to $0.30 per share.

04

Macao VIP and Mass Market Trends

Macao's VIP segment has recently shown significant growth, driven by super high-end players and increased liquidity, though it remains a low-margin segment (12-15% of GGR). While base mass growth is desired for its favorable margin structure, the bulk of current non-rolling growth is dominated by upper tiers of the value segment. The company is increasing its competitiveness in the VIP segment and sees potential for base mass recovery.

05

Singapore's Long-Term Sustainability and Growth Potential

Management views Singapore's growth as highly sustainable due to its unique duopoly market, strong government support, and the exceptional quality of the Marina Bay Sands asset. The focus is on attracting high-value gaming customers, with hotel rooms primarily serving as a comp offering rather than a standalone revenue driver. The company is investing $8 billion in IR2 to further grow its presence, indicating strong confidence in the market's long-term potential.

06

Digital Gaming Business Closure and Entertainment Strategy

The company decided to officially close its digital gaming business, citing a lack of perceived good use of shareholder capital, with immaterial cost savings. LVS maintains a long-standing focus on high-quality entertainment, building assets like arenas to support it. The recent NBA games in Macao were a success, showcasing Macao as a global tourism destination and fulfilling concession renewal goals to bring high-value global sports to the region.

AI-generated summary of the company’s earnings call. Not investment advice.