We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Las Vegas Sands Bets Big on Premium Mass: Is it a Long-Term Play?
Read MoreHide Full Article
Key Takeaways
LVS is shifting focus to premium mass gaming in Macau amid base mass market saturation.
The company is leveraging its Londoner Grand property to attract high-value players.
LVS' shares rose 15.6% the past month and trade at a discount with EPS growth forecasted for 2025 and 2026.
Las Vegas Sands (LVS - Free Report) is doubling down on the premium mass gaming segment in Macau, positioning it as a central pillar of long-term growth. This strategic shift reflects evolving market dynamics, where the traditional base mass market has become increasingly competitive and less lucrative, especially as visitation patterns remain lopsided toward lower-spending day-trippers.
During first-quarter 2025, executives acknowledged a tougher operating environment in Macau, noting that opportunities in the base mass segment have narrowed. In response, LVS has been focusing on leveraging its top-tier assets, particularly the newly completed 2,400-room Londoner Grand, to attract higher-value customers. The premium mass segment has shown greater resilience and higher profitability, aligning well with the company’s upscale portfolio.
The pivot also involves greater emphasis on smart tables, side bets and tailored gaming experiences that increase player engagement and boost hold rates. Though EBITDA margins in Macau were under pressure this quarter, management expects improvement as revenues from the premium mass ramps up and the full inventory of the Londoner property comes online.
This approach is not without risks. The premium mass arena is becoming increasingly crowded and LVS must defend its share amid stiff competition. However, with scale, product diversity and luxury appeal on its side, the company appears well-positioned to capitalize on the segment’s long-term potential.
Ultimately, while short-term volatility in Macau may persist, LVS’ premium mass push could provide the foundation for durable growth, if execution keeps pace with ambition.
Competitors Also Eye Premium Mass as Macau’s Battleground Intensifies
Two key rivals, Wynn Resorts (WYNN - Free Report) and MGM China, a subsidiary of MGM Resorts International (MGM - Free Report) , are also aggressively targeting the premium mass segment in Macau, intensifying competition for high-value customers.
Wynn Resorts has long been associated with luxury and VIP clientele, but is increasingly tailoring its offering toward premium mass players. Its refurbished properties in Cotai and premium-focused marketing campaigns position Wynn Resorts as a formidable player in this space.
Meanwhile, MGM China is expanding its premium mass footprint by enhancing floor space and product offerings at its MGM Cotai and MGM Macau resorts. The company has also leaned into digital tools and loyalty programs to deepen engagement with premium mass guests.
LVS’ Price Performance, Valuation and Estimates
LVS’ shares have gained 15.6% in the past month compared with the industry’s growth of 7.6%.
LVS Price Performance
Image Source: Zacks Investment Research
Despite the recent gain, LVS is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 2.86, which is below the industry average.
LVS P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 and 2026 earnings per share is pegged at $2.44 and $2.81, indicating a rise of 7.5% and 15.3%, respectively.
Image: Bigstock
Las Vegas Sands Bets Big on Premium Mass: Is it a Long-Term Play?
Key Takeaways
Las Vegas Sands (LVS - Free Report) is doubling down on the premium mass gaming segment in Macau, positioning it as a central pillar of long-term growth. This strategic shift reflects evolving market dynamics, where the traditional base mass market has become increasingly competitive and less lucrative, especially as visitation patterns remain lopsided toward lower-spending day-trippers.
During first-quarter 2025, executives acknowledged a tougher operating environment in Macau, noting that opportunities in the base mass segment have narrowed. In response, LVS has been focusing on leveraging its top-tier assets, particularly the newly completed 2,400-room Londoner Grand, to attract higher-value customers. The premium mass segment has shown greater resilience and higher profitability, aligning well with the company’s upscale portfolio.
The pivot also involves greater emphasis on smart tables, side bets and tailored gaming experiences that increase player engagement and boost hold rates. Though EBITDA margins in Macau were under pressure this quarter, management expects improvement as revenues from the premium mass ramps up and the full inventory of the Londoner property comes online.
This approach is not without risks. The premium mass arena is becoming increasingly crowded and LVS must defend its share amid stiff competition. However, with scale, product diversity and luxury appeal on its side, the company appears well-positioned to capitalize on the segment’s long-term potential.
Ultimately, while short-term volatility in Macau may persist, LVS’ premium mass push could provide the foundation for durable growth, if execution keeps pace with ambition.
Competitors Also Eye Premium Mass as Macau’s Battleground Intensifies
Two key rivals, Wynn Resorts (WYNN - Free Report) and MGM China, a subsidiary of MGM Resorts International (MGM - Free Report) , are also aggressively targeting the premium mass segment in Macau, intensifying competition for high-value customers.
Wynn Resorts has long been associated with luxury and VIP clientele, but is increasingly tailoring its offering toward premium mass players. Its refurbished properties in Cotai and premium-focused marketing campaigns position Wynn Resorts as a formidable player in this space.
Meanwhile, MGM China is expanding its premium mass footprint by enhancing floor space and product offerings at its MGM Cotai and MGM Macau resorts. The company has also leaned into digital tools and loyalty programs to deepen engagement with premium mass guests.
LVS’ Price Performance, Valuation and Estimates
LVS’ shares have gained 15.6% in the past month compared with the industry’s growth of 7.6%.
LVS Price Performance
Image Source: Zacks Investment Research
Despite the recent gain, LVS is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 2.86, which is below the industry average.
LVS P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 and 2026 earnings per share is pegged at $2.44 and $2.81, indicating a rise of 7.5% and 15.3%, respectively.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.