The impact of COVID-19 on Las Vegas Sands: Case Study

The impact of COVID-19 on Las Vegas Sands: Case Study

Summary

Recent months have been unprecedented in the tourism sector. Travel restrictions, flight suspensions, falling consumer confidence and a slew of negative press are just some of the issues lodging operators are having to contend with. As one of the resorts industry's largest players, Las Vegas Sands has been severely impacted.

Key Highlights

• Las Vegas Sands has taken a major hit in terms of revenue and therefore has seen a slump in profits due to the closure of resorts. In a statement made mid-April 2020, Las Vegas Sands declared net revenues of $1.78 billion (USD) for Q1 2020 ending March 31st , a decrease of 51.1% on the same period the year earlier.
• In Q1 2020, The Venetian Macau net revenue dropped by almost 65%.
• In a statement made April 17th 2020, Las Vegas Sands aligned its strategic priorities amid COVID-19. This came days before the release of Q1 2020 financial results, which were much less impressive than the year before. This statement ensured that staff and guest wellbeing, safety and security was at the forefront of operations amid the pandemic. However, it also stated that Las Vegas Sands’ balance sheet strength would allow it to re-emerge after the height of COVID-19 with the ability to resume operations better than before, with future growth promises fully intact.

Scope

• This case study looks at how the COVID-19 pandemic is impacting Las Vegas Sands and assesses the company's response.

Reasons to Buy

• Gain an overview of the current global COVID-19 situation
• Understand the impact that COVID-19 is having on the lodging industry
• Assess the impact on Las Vegas Sands
• Understand what the future may hold for the company