Summary of LVS Q2 2026 Earnings Call

1Key Financial Results and Metrics

Marina Bay Sands (MBS): Generated EBITDA of $689 million for the quarter. If hold had been as expected, EBITDA would have been $652 million (a $37 million decrease).

Macau Properties: Achieved EBITDA of $430 million, impacted by a low VIP rolling hold of 1.35%. Adjusted for hold, EBITDA would have been $517 million.

Mass Gaming Revenue Growth: MBS saw a 5% year-over-year increase in mass gaming revenues. Sands China’s mass gross gaming revenue grew 8%, outperforming the overall Macau market's 4% growth.

Total GGR: Sands China's total GGR increased 4% year-over-year, while the Macau market's total GGR was flat.

Share Repurchase: The company repurchased $787 million of LVS stock during the quarter, with a total of 16.3% of outstanding shares repurchased over the last 11 quarters.

2Strategic Updates and Business Highlights

Expansion Plans: The Marina Bay Sands expansion is on track for completion in early 2031, aimed at increasing premium suite capacity and entertainment offerings.

Reinvestment Strategy: The company is optimizing reinvestment levels, with a focus on high-return projects. Renovations at The Venetian commenced, targeting completion by Chinese New Year 2028.

Customer Experience Enhancements: Investments in service levels and customer experience are yielding positive results, with significant growth in gaming volumes across all segments.

3Forward Guidance and Outlook

EBITDA Target: The company aims to reach $700 million in quarterly EBITDA over time, emphasizing ongoing investments and operational strategies to achieve this goal.

Market Growth: The management is optimistic about the long-term growth potential in both Singapore and Macau, driven by high-value tourism and economic growth in Southeast Asia.

4Bad News, Challenges, or Points of Concern

Impact of World Cup: There was a noticeable decline in visitation during the World Cup, particularly affecting high-value patrons in June, which contributed to lower gaming revenues.

Hold Volatility: The exceptionally low VIP rolling hold in Macau is a concern, impacting reported EBITDA and reflecting potential volatility in revenue.

Seasonality Effects: The second quarter typically experiences softer tourism demand, which was exacerbated this year by the World Cup's diversion of high-value patrons.

5Notable Q&A Insights

Market Dynamics: Management acknowledged that the quarter did not reflect the true earnings potential of their properties, attributing some performance issues to external factors like the World Cup.

Reinvestment Strategy: The reinvestment levels are expected to stabilize in the second half of 2026, with a focus on optimizing operational expenses while maintaining service quality.

Competitive Landscape: The competitive environment remains intense, particularly in the premium segment, but LVS is gaining market share in both the VIP and premium mass segments.

Future Demand: There is optimism regarding pent-up demand post-World Cup, although management noted it was too early to assess the immediate bounce-back in visitation. Overall, LVS demonstrated resilience in its financial performance despite external headwinds, with a clear focus on strategic investments and long-term growth potential in key markets.