Sands low on Vegas, Boyd upbeat, mixed signals from Station

Yesterday it was Las Vegas Sands‘ turn with JP Morgan gaming analysts and the company was full of surprises. Little of its commentary had to do with the Las Vegas Strip, about which it was “downbeat,” what with conventioneers and high rollers being in short supply. “LVS hasn’t pursued the relatively less profitable drive-in customer, and doesn’t look to pivot from its group/convention focus as management still expects a full recovery here,” wrote analyst Joseph Greff, adding that layoffs had nonetheless been “limited.” Off the burner entirely is Sands’ planned U.S. shopping spree for casinos. This was “made under the presumption that assets would be deeply mispriced during the crisis, but at this point, they look to have largely recovered.” (Good news if you are a holder of said assets.) Instead Sands will look to pick up additional properties “where it already has a presence,” i.e., Asia.

The company’s focus was mainly on Macao and Singapore. In the latter, it expects recovery to be “gradual” rather than dramatic “as China will be prudent in allowing the number of visas to increase gradually over time.” As with MGM Resorts International, customer interest is said to be strong, especially in premium mass-market play, although Sands hopes its bread-and-butter players return in time for the rollout of the Londoner and Four Seasons Tower Suites. The company actually expects better cash flow in Macao this year than last. Locals and their slot play are keeping Marina Bay Sands “on the road to profitability,” despite zippo overseas patronage. But it won’t be business as usual until Malaysia and Japan reopen themselves to Singaporean traffic.