Las Vegas Sands has reaffirmed its long-term target of generating $700m in quarterly EBITDA from its Macau operations, even as the 2026 FIFA World Cup weighed on second-quarter results.
The company posted net revenue of $3.15bn for the three months to 30 June 2026, representing a 0.7% decline compared to the same period last year.
Casino revenue remained the dominant income source at $2.34bn, though that figure represented a 3.1% year-on-year drop that dragged overall results lower.
Revenue from rooms, food and beverage, mall, and convention, retail and other activities all moved in the opposite direction, recording growth across the quarter.
Patrick Dumont, chairman, CEO and president of Sands, attributed the softer casino performance primarily to the impact of the FIFA World Cup drawing high-value players away from its resorts.
“There was a decrease in visitation to both Marina Bay Sands and our Macau properties by our high-value patrons during the World Cup,” Dumont said on the earnings call.
He added that the effect was particularly visible in June, saying: “It was very noticeable in June given the trajectory of the businesses in both markets earlier in the quarter.”
Despite the disruption, Dumont pointed to a 5% growth in mass gaming revenues at Marina Bay Sands compared to Q2 2025, calling it evidence of the business’s resilience and underlying strength.
On Macau specifically, Dumont told analysts the company knew exactly what was needed to hit its target, stating: “Our target is still the $700m. We have some work to do to get there, but we feel like the process is in place for us to keep working to head in that direction.”
Total Macau revenue dipped 0.4% to $1.79bn, with revenue higher across four of its properties including the Londoner Macau, which remained the region’s primary revenue source.
Declines were reported at the Venetian Macau and Plaza and Four Seasons Macau, though rolling chip volume surged 73% as lower-than-expected hold weighed on reported figures.
Singapore’s Marina Bay Sands also saw a modest revenue decline of 0.6%, bringing in $1.38bn for the quarter, mirroring the softer trend seen in Macau.
On the profitability side, operating expenses climbed 6.0% to $2.54bn, contributing to a 21.1% drop in operating profit and a 24.3% decline in pre-tax profit to $416m.
Net profit after tax fell 28.1% year-on-year to $373m, while net profit attributable to Sands came in 25% lower at $346m for the quarter.
Consolidated adjusted property EBITDA dropped 15.8% to $1.12bn, reflecting the combined pressure from weaker revenues and rising costs during the period.
The first-half picture was considerably brighter, with H1 revenue jumping 11.6% to $6.74bn and operating profit climbing 12.3%, thanks largely to a stronger Q1 performance.
Analysts at Morgan Stanley had flagged ahead of the results that Macau would likely be the weakest segment of the gaming market during the quarter, citing softer industry trends.
The bank subsequently lowered its 2026 forecasts for Las Vegas Sands to reflect weaker Macau assumptions but left longer-term estimates largely intact, cutting its price target from $69 to $68.
Despite the downward revision, Morgan Stanley noted that Sands shares still offered around 48% upside potential based on its valuation, suggesting broader confidence in the group’s trajectory.
Dumont closed the earnings call on an optimistic note, saying the company remained confident its people, products, and hospitality focus would drive growth and deliver strong shareholder returns in the years ahead.
