Las Vegas Sands Corp. (NYSE:LVS) Q4 2022 Earnings Call Transcript

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I hope you get a chance to see it. And the reemergence of Asian tourism, including China back into the property. The only regret we have is Singapore. We just like to have more capacity because — you’ll see — I think you’ll see in this year the power of — the earning power of MBS. It’s an extraordinary product, and we’re lucky to have it.

Joseph Greff : And Patrick, just back to your mix and yield comment. Do we interpret that, at least if we look back to 2019, that, that China MBS patron was a — had a positive mix on spend per trip or spend per day or gaming revenue per day?

Rob Goldstein : I think it’s a combination of factors, Joe. I think, obviously, the China market is always powerful. But I also think there’s cost issues in all these markets. There’s this inflationary factors, undeniable, be it energy, wages — I mean, there’s a different world out there, and you’ve got to cope with it. But the thing about MBS that fascinates us is we believe we can drive revenues across the board. We’re going to rethink our retail, rethink our table mix, our floor, our room pricing. We think we have a product that the demand will be close to insatiable for it, from the gamer and non-gamer perspective. And we’re going to overcome margin cost — margin by overcoming costs with higher revenues, a lot higher revenues across the board in every segment.

That’s the approach. We see MBS as a very unique product that’s unrivaled in that part of the world. And we can just push pricing across the board, gaming pricing, ADR pricing, retail pricing, F&B pricing, it’s just that good and that desirable. And let’s face it, the market right now is using our favor. Singapore is very desirable from a lot of perspectives.

Joseph Greff : Great. Thank you.

Operator: Thank you. And the next question is coming from Carlo Santarelli from Deutsche Bank. Carlo, your line is live.

Carlo Santarelli : Hey, everybody. Thanks, and good evening. Rob, or whoever wants to handle this, I was just wondering, in the brief time that China has more or less reopened, have you guys seen positive or negative, any change in behavior as it pertains to patronage at MBS?

Rob Goldstein : MBS, that’s a good question. I think it’s too early to say we’re going to see that. I see us as getting plenty of trying of participation, both in Macao and Singapore. But it’s really too early to say. It just happened so quickly and the turnabout was so rapid that I think it’s too hard to predict. I think the way this is going to segment though is that we’re going to get more than our fair share of the rolling business in MBS. That moves in that direction, and we’ll get the premium mass customer to visit more into Macao. I think our business really is going to split in that direction. I think it’s very predictable what’s going to happen here, and we’re okay with that. So Singapore will get the top of the top.

But each of those places will get tons of premium mass demand from China and throughout the region. I also think people underestimate how powerful Macao can become as a desirable visitation place throughout China. It’s got everything. It’s got the rooms, it’s got the access, it’s got the — one thing, it has beyond Singapore, it’s has lots of capacity and lots to offer. So I think Macao is going to be a very strong international destinations ahead. We plan to be very aggressive trying to push people into Macao to see the property, all of our products.

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