Las Vegas Sands 3Q profit beats expectations as Macau boom makes up for Las Vegas stagnation
Oct 18, 2013 / 6:04 am
LAS VEGAS, Nev. - Las Vegas Sands Corp. beat Wall Street's expectations with its third-quarter results as record profits in Macau helped make up for continued weakness in Las Vegas.
The gambling giant's net income nearly doubled, driven by growth at Sands' five Macau properties. Macau is the only place in China where casino gambling is legal.
Sands' billionaire CEO Sheldon Adelson on Thursday cited the company's ability to develop "large, iconic projects" as the key to its growth. Sands was the first U.S. corporation to enter Macau, now the world's largest gambling market. The enclave issued a limited number of gambling licenses in the early 2000s, and some U.S. competitors were shut out.
"I couldn't be more confident about our continued success," Adelson told analysts during a conference call.
China Ltd., which runs Las Vegas Sands' Macau properties, now accounts for more than two-thirds of the company's revenue. Sands China's revenue rose 42.7 per cent during the third quarter.
Adelson said he is watching Japan closely to see if it might become the next major market for Sands. He said the company could change major Japanese cities for the better.
"Our integrated resorts in the first 24 months increased tourism in Singapore by 41 per cent. It's generally acknowledged we have changed Las Vegas with our business model and convention phase. We have changed Macau," he said. "Everybody in the government will acknowledge that. And we could easily change any other city in which we have a focused, paced business model."
Revenue remained sluggish at Sands' two Las Vegas casinos, the Venetian and Palazzo. Only restaurants and clubs showed significant growth, with food and beverage revenue rising 22 per cent from last year. Casino revenue was down.
Sin City patrons are increasingly rejecting gambling in favour of high-end drinking and dining, forcing casino companies into an entertainment arms race. Sands' Las Vegas casinos host two of the 10 most profitable clubs in the U.S., according to the trade publication Nightclub & Bar.
The company reported net income of $626.7 million, or 76 cents per share, up from $349.8 million, or 42 cents per share. Revenue grew by 32 per cent to $3.57 billion.
Adjusted earnings were 82 cents per share. Analysts polled by FactSet predicted adjusted earnings of 76 cents per share on revenue of $3.47 billion.
The company's stock rose 18 cents to $71.15 in aftermarket trading after a 2 per cent rise during regular-session trading.
Read more Business News
|QHR Technologies Inc||1.20||-0.08|
|Anavex Life Sciences||0.37||-0.01|
|Copper Mountain Mining||1.56||+0.02|
This column is the last of three, for how to prove your personal injury claim. It is the piece de resistance of the trilogy, the Chuck Norris piece – the final say! As mentioned in the first two...
The bank manager just phoned and asked for full and immediate repayment of the line of credit because the latest, (and they were late!), financial statements showed continuing losses and falling sales...
Recently I recorded a video series for my keynote speaking business. It was called from Faith to Future. In one of the episodes, I talked about the concept of using hard work to get out of a difficul...
- Judge orders Colo. cake-maker to serve gay couples for wedding celebrations
- Custom offers, guidance as you walk around Apple stores with precise location technology
- Most actively traded companies on the TSX, TSX Venture Exchange markets
- Housing starts fall in November: CMHC
- Markets advance, strong U.S. jobs data competes with Fed tapering concerns
- Canadian dollar closes lower amid strong Canadian, U.S. jobs reports
- Google, Facebook, other major tech companies call for tighter controls on government snooping
- Canadian big banks post record profits in 2013, but outlook raises concern
- Ontario company to be sentenced in deadly Toronto propane plant blast
- Singer Bocelli visits MIT for workshop on adaptive technology for the visually impaired
- Cosmopolitan Las Vegas opens new glass factory-themed concert and meeting space
- US unemployment rate falls to 5-year low of 7 per cent as employers add 203,000 jobs