Las Vegas Sands Raises Dividend, Will Repurchase $2B in Stock

Posted on: October 23, 2024, 05:08h. 

Last updated on: October 24, 2024, 09:54h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Las Vegas Sands (NYSE: LVS) is elevating its shareholder rewards, announcing an increase to its quarterly dividend while unveiling a large share repurchase program.

Liu Changjian, kidnap, Singapore, Marina Bay Sands
Marina Bay Sands in Singapore. Operator Las Vegas Sands raised its dividend and announced a new $2 billion buyback plan. (Image: Marina Bay Sands)

In conjunction with the release of its third-quarter results, the gaming company said Wednesday it’s lifting its quarterly payout to 25 cents per share from 20 cents, marking the first increase since the casino giant reinstated the dividend in August  2023. The payout had been suspended for more than three years as the gaming company sought to conserve capital during the early stages of the coronavirus pandemic and as the Macau rebound took longer than expected to materialize.

We look forward to utilizing our share repurchase and dividend programs to continue to return excess capital to stockholders,” said CEO Robert Goldstein in a statement.

Moody’s Investors Service recently said Sands has the cash flow to support its dividend and the newly announced increase is testament to that fact. The company’s Sands China arm, which runs five Macau integrated resorts, is expected to restore its payout next year.

Las Vegas Sands Extends Buyback Binge

News of the operator’s fresh $2 billion share repurchase program is pertinent on a variety of levels, including the point that the Sands announced a similar plan for the same amount a year ago.

During the third quarter, the Venetian Macau operator bought back $450 million worth of its stock. The gaming company was smart to be active on the buyback front during the July through September period because the stock scuffled for much of that span before rallying in significant fashion late last month after China lowered interest rates and unveiled stimulus measures.

“Our financial strength and industry-leading cash flow continue to support our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets and our program to return excess capital to stockholders,” added Goldstein.

Sands’ expansion of its buyback efforts also comes at a time when a variety of gaming companies are turning to share repurchases as a way of returning capital to investors.

Sands Earnings Miss Estimates

Low hold on rolling play in both Macau and Singapore — the only territories in which Sands currently operates — weighed on third-quarter results. LVS said it earned 44 cents per share on revenue of $2.68 billion during the period. Analysts expected earnings of 53 cents on sales of $2.69 billion.

Operating income was $504 million, compared to $688 million in the prior year quarter.  Net income in the third quarter of 2024 was $353 million, compared to $449 million in the third quarter of 2023,” according to the company.

Sands had cash on hand of $4.21 billion at the end of the quarter and access to $4.47 billion in borrowing capacity.