Las Vegas Sands improves earnings for first quarter

Gambling business from resorts Las Vegas Sands Corp. operates in Macau and Singapore helped the company reverse a first-quarter net loss from a year ago.

Revenues from the two markets accounted for 82 percent of the casino operator's quarterly results. Analysts don't expect things to change anytime soon.

"Performance at Las Vegas Sands continues to be dominated by the Asian operations and will do so for the foreseeable future," KDP Investment Advisors gaming analyst Barbara Cappaert said, adding that the company's two Strip resorts are having "struggles more so than its competitors."

Las Vegas Sands said Tuesday its net income in the quarter that ended March 31 was $228.2 million, which translated to earnings per share of 28 cents. A year ago, the company lost $28.9 million in the quarter, or 4 cents a share.

Earnings, however, fell short of the 43 cents per share predicted by analysts. The company's shares, traded on the New York Stock Exchange, fell as much as 12 percent in after-hours trading.

Company revenues increased 58.2 percent to $2.11 billion, compared with $1.33 billion a year ago.

In Macau, where the company operates three hotel-casinos, net revenues increased 22.6 percent to $1.16 billion. Net income in Macau was $262.1 million, an increase of 131.3 percent.

In Singapore, where Las Vegas Sands operates the year-old Marina Bay Sands, net revenues were $584.9 million, with total operating income of $196.7 million.

"The doors to Marina Bay Sands opened one year ago last week and in the 52 weeks since that opening, we have made more than $1 billion in (cash flow)," Las Vegas Sands Chairman Sheldon Adelson said on a conference call with analysts. "We made a billion dollars at a property which for the first several months was not able to offer its complete set of amenities."

Adelson said the company is "still miles away from realizing the full potential of our opportunity in Singapore."

In Las Vegas, The Venetian and Palazzo resorts saw net revenues decline 7.7 percent while operating income fell 24.2 percent. The company said a low hold rate on table games play hurt results by roughly $45 million in revenue.

However, a boost in group meetings and convention business during the quarter drove a 29 percent increase in hotel room revenues at the two resorts and an 11.5 percent increase in food and beverage business.

Las Vegas Sands eliminated most complimentary room offers, and 97 percent of all occupied rooms during the quarter were sold to cash-paying customers, compared to just 68 percent in the same quarter last year.

"Even when the low table hold is taken into account, we would have thought results would have been modestly better," Cappaert said.

Contact reporter Howard Stutz at hstutz@review
journal.com or 702-477-3871. Follow him on Twitter @howardstutz.