Not rushing in
Las Vegas Sands (LVS) is planning to “wait patiently” before investing in the online gambling space. The casino company’s CEO Robert Goldstein made these comments on Wednesday during an investor call following the publication of its Q4 2021 financial results. The latest figures show a net loss of $315m for its most recent quarter.
Many major casino companies have been diving into the US online gambling pool as the market continually expands. There have been numerous eye-catching valuations and acquisitions over the past couple of years. LVS is preferring to sit back and take a more patient approach rather than rushing in too quickly.
Goldstein believes that 2022 will be a big year for LVS
Goldstein mentioned the current struggles for many online gambling operators when it comes to their share prices. He also noted that the land-based gambling space is rebounding nicely from its pandemic struggles. Goldstein believes that 2022 will be a big year for LVS, particularly in Singapore and possibly Macau.
Waiting for an ideal entry point
Goldstein revealed in January 2021 that the company was looking at various online gambling opportunities. Sands, however, has not really been linked to any plays in the sector in the intervening 12 months; a team focusing on digital opportunities was created last year. The valuations many online gambling companies have dropped significantly in recent months after meteoric rises.
Goldstein does believe that online gaming and sports betting will be very successful sectors in the future. He explained, though: “It hasn’t been a bad idea to wait for the last six months to eight months to see how this shakes out and there’s been a lot of blood spilled.”
assessing various digital opportunities across different markets and verticals
LVS will wait until it appears that the situation is getting better and an ideal entry point presents itself. LVS chief operating officer Patrick Dumont mentioned that the company was assessing various digital opportunities across different markets and verticals.
LVS reported net revenue of $1.01bn in its fourth quarter, with a net loss of $315m. For the entire year, it generated a net loss of $961m, compared to a $1.7bn net loss in 2020. Despite these results, LVS is optimistic about the post-pandemic recovery of travel and tourism spending across its various markets.
The company has been investing heavily into its properties in Singapore and Macau. Both of these regions have been particularly impacted by the pandemic. Of the $316m net loss for the final quarter, $245m is attributable to Sands China Ltd., which controls LVS’ Macau properties.
LVS is also in the process of selling its entire Las Vegas portfolio, including Sands Expo and The Venetian Resort. It agreed to sell its various operations and real estate in the city last March for a total of about $6.25bn. The transaction is expected to close in the second quarter of 2022.