First-quarter numbers for Las Vegas Sands were “nicely ahead” per J.P. Morgan analyst Joseph Greff, who said Sands’ Macao casinos were firing on all cylinders (mass-market play, VIP action, slots, retail and lodging). He expected Macanese cash flow of $304 million and got $385 million, far more than the rest of Wall Street was awaiting. “There is still ample room for further recovery,” Greff wrote, noting that Sands had achieved the near-unthinkable with only 69% of hotel rooms (due to a labor crisis), 25% of normal ferry capacity, low passenger loads—39% of capacity—at Macao’s dinky airport, and “less robust visitation” from Hong Kong (74% of peak performance) and Guangdong Province (55%). Retail sales of $109 million were particularly impressive, as they hit 95% of pre-Covid altitude. Beyond that, Chinese mainland visitation is very low: 27%. Still, he expects “a rising tide to lift all Macau boats.” As for Sands itself, its labor crunch is expected to ease by summer, so neither Greff nor management is worried.
Continue reading Sands hailed; A’s to Vegas; Coney casino razzed; Mega-Jottings
