Las Vegas Sands, operator of the Venetian and Palazzo resorts on the Strip and properties in Macau and Singapore, reported its second-quarter earnings Wednesday.
Company: Las Vegas Sands Corp. (NYSE: LVS)
Revenue: $3.24 billion (up 25.6 percent from the second quarter of 2012). Macau revenue was at an all-time record — $2.07 billion for the Sands China division — thanks to 14.6 million visitors, a 40 percent increase over last year’s second quarter. Table-game win in Macau increased 61.1 percent to a record $929.6 million.
Earnings: $540.6 million (up 48 percent from the second quarter of 2012). Gaming revenue was below expectations in Singapore with table-game revenue up 1.8 percent to $272.4 million. Singapore room revenue increased 8 percent to $86.5 million with an occupancy rate of 99.4 percent.
Earnings per share: 65 cents (up 47.7 percent from second quarter of 2012).
Quote: “In Macau, we delivered record financial results, with strong growth and operating momentum reflected in every segment of our business. We welcomed more than 14 million visitors to our Cotai Strip properties during the quarter and delivered a record $657.2 million of adjusted property (cash flow) from our Macau property portfolio. We remain confident that our market-leading Cotai Strip properties will meaningfully enhance the appeal of Macau and the Cotai Strip to business and leisure travelers and provide an outstanding platform for growth in the years ahead.” — Sands Chairman and CEO Sheldon Adelson
What it means: Work is continuing on the Parisian Macau, a themed resort on the Cotai Strip with replicas of Paris landmarks, including a half-scale Eiffel Tower, due to open in late 2015. It will have more than 3,000 rooms and suites, 450 table games and 2,500 slot machines.
Sands reported that its second-quarter cash flow results were split with 59 percent from Macau, 32 percent from Singapore, 6 percent from Las Vegas and 3 percent from Bethlehem, Pa.
The company said its Las Vegas operation is stable with a 26.9 percent increase in table drop — driven by a 39.6 percent increase in baccarat — to $551.3 million. Las Vegas slot handle was up 6.8 percent to $475.4 million and room revenue increased 6.9 percent to $120.6 million, attributed to higher hotel occupancy.