Las Vegas Sands investments in Asia push revenue over $3B

Las Vegas Sands Corp.’s Asian investments pushed the company past $3 billion in revenue as the company’s second-quarter earnings on Wednesday posted double-digit percentage increases over last year, beating Wall Street forecasts.

The company that operates The Venetian and Palazzo on the Strip saw cash flow expand dramatically in Macau and to record levels in Singapore in the quarter that ended June 30.

The company also benefited from $361 million in net revenue — a 13.5 percent increase over the first quarter — from its new property on Macau’s Cotai Strip, The Parisian.

A survey of 14 Wall Street analysts had projected earnings of an average 59 cents a share while 11 analysts said they expected the company to post $3 billion in revenue.

For the quarter, net income was $638 million, 61.9 percent ahead of 2016’s second quarter.

The company also reported Wednesday it is continuing its dividend policy and will pay shareholders of record on Sept. 21 73 cents a share on Sept. 29. During the quarter, the company repurchased $75 million in common stock.

Sands’ Las Vegas properties showed less robust increases than expected for the quarter and executives said in an afternoon conference call with investors that they were disappointed in their Las Vegas results.

“I think you know this quarter was disappointing in terms of the lodging component, which is more and more important in Las Vegas,” Sands Chief Operating Officer Rob Goldstein said in the call.

“George Markantonis (president and chief operating officer of The Venetian and Palazzo) tells me that the summer looks better to him and that room business is picking up considerably and he thinks the second half we’ll do well,” Goldstein said.

In Las Vegas, Sands reported net revenue of $384 million, 7.9 percent ahead of last year’s second quarter. Table-game drop was down 6.1 percent from last year to $352 million, but the casino played lucky, winning 16.3 percent. Slot handle was down 8.5 percent to $606 million with an 8.3 percent hold.

But room revenue also fell with the properties’ occupancy rate down 2.3 percentage points to 92.7 percent. Higher room rates offset some of the downturn as the average daily room rate went up 1.7 percent from last year to $244 a night.

“He (Markantonis) thinks the FIT (free and independent traveler) business is picking up and the group business is accelerating, so we’ll do well,” Goldstein said. “So we’re hoping for more there. Obviously, we didn’t have as good a quarter as we’d hoped for after a stellar first quarter.”

But Macau and Singapore carried the company for the quarter.

Sands is the dominant player in Macau and Chairman and CEO Sheldon Adelson reminded investors on the conference call that next month marks the 10th anniversary of the opening of The Venetian Macao.

“When it opened in August 2007, The Venetian stood alone on Cotai,” Adelson said. “Its opening marked the first effort in my vision to create the Cotai Strip. I was absolutely committed then and I remain as deeply committed today to continuing to support Macau’s economic diversification and its transformation into Asia’s leader in the tourism business.”

The company has invested more than $13 billion in Macau since first arriving there in 2002 as one of the first American companies to take advantage of new concessions offered by the government.

The company’s Singapore property, Marina Bay Sands, meanwhile, is one of two casino resort properties operating there. It is often cited by Japanese policymakers as an example of the type of integrated resort that nation wants to develop.

Because of that notoriety, Adelson believes his company is the front-runner to develop a resort in Japan when the government develops legislation and regulations for gambling in that country.

The company’s stock price fell 1.5 percent, 97 cents, in Wednesday trading and another 0.9 percent, 55 cents, to $61.10 a share after hours on above-average volume.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

Contact Richard N. Velotta at or 702-477-3893. Follow @RickVelotta on Twitter.

Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like