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Las Vegas Sands ( LVS ) shares soared Thursday, one day after executives at the hotel and casino operator said they are confident in their future success due to their strong assets in the important gambling market of Macao.

A former Portuguese colony known for its numerous casinos, Macao last month marked its 25th anniversary under Chinese rule. Of Las Vegas Sands' $11.3 billion in 2024 revenue, $7.1 billion came from its operations in Macao, a Chinese "Special Administrative Region" like Hong Kong.

"We believe the Chinese economy will grow, and Macao market will grow as well," Chief Executive Officer Robert Goldstein said on the company's fourth-quarter earnings call, according to a transcript provided by AlphaSense. "Gross gaming revenue in Macao should exceed $30 billion in 2025, and continue to grow."

The China Effect

The company's numbers in Macao have been affected by the sluggish growth of China's economy . The world's largest gambling mecca generated a total of 226.8 billion Macao patacas ($28.3 billion) in gaming revenue in 2024. Macao produced 293.3 billion patacas ($36.6 billion) in gaming revenue in 2019, but numbers fell off sharply the following year because of the pandemic and have yet to fully recover.

"Would we do better with a stronger Chinese economy? I think that's an easy thing to say yes to," Chief Operating Officer Patrick Dumont said. "But I think, overall, we're very happy with the direction of our business, our investment. And hopefully, as things progress over time, we'll be the beneficiary of a stronger Chinese economy and see our investments produce more cash flow ."

Las Vegas Sands' fourth-quarter capital expenditures totaled $547 million, including $345 million in Macao.

"We believe very strongly the strength in this market," Dumont said. "We've been investing into it for that reason."

Investors seemed to respond positively to the company's direction even as fourth-quarter profit missed analysts' estimates. Shares closed 11% higher to approach positive territory over the last 12 months.

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