Maybe it’s because I’m a Londoner: Speaking with Bernstein’s Vitaly Umanski as part of the bank’s Strategic Decisions conference, LVS CEO Robert Goldsten and president Patrick Dumont expressed disappointment at the slow pace of the Covid recovery in Macau. But they were both optimistic about the medium and longer-term picture. While revenues in May are still some way below 2019 levels (see below the May GGR numbers), a sign of continued issues around travel to Macau by Chinese visitors, Goldstein said when they return things business will bounce back very quickly, “just like Las Vegas” with help from the new Londoner, the first phase of which opened in February. “This Londoner product could be awfully good,” said Goldstein. “I don’t think people are giving us credit for what we have invested in our portfolio over there when the gates open to tourists.” Goldstein added that Macau remained “absolutely capacity constrained”. “Just having expansions from Galaxy and us, it is not enough for what we think will come once the pandemic is over.”
Wish you were here: “Macau is still the best land-based market in the world,” Goldstein said and when asked about the concession process he repeated LVS’s faith that its relationship with the Chinese government would hold it in good stead.
“I rely on our $15bn investment, our leadership in rooms, in restaurants, in conventions. We did everything when it wasn’t popular. And I don’t think the government will forget that.”
Brass in pocket: Goldstein and Dumont repeated the message from the Q1s that it has yet to make any decision in the deployment of the Las Vegas sale proceeds. More investment in Macau and, particularly, Singapore seems on the cards but also in the US where LVS retains an interest in prospective new land-based gaming opportunities in New York and Texas. “We like building up from the ground,” said Dumont. Goldstein also repeated the Q1 message that exiting Las Vegas also didn’t preclude the company from looking at sports-betting and online and suggested that the aforementioned land-based entries could be part of its entry into that arena.
“New York and Texas are both hugely viable,” said Goldstein. “I know it’s not fashionable being involved in the land-based business (but) these markets will eventually be digital markets. The game is just beginning digitally and land-based will pave the way for digital.”
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