68°F
weather icon Clear

Sands’ 3Q earnings dip; Adelson returns to call

Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson on Wednesday participated in his first earnings call of the year after missing previous briefings because of treatment for non-Hodgkin lymphoma.

Adelson told analysts listening to the company’s third-quarter call that he was happy to be back so that he could share news about an increase in shareholder dividends the company has planned for 2020. The company had announced in February that Adelson was dealing with side effects from medication he was taking for the treatment of the disease.

During the call, the company noted that it missed analysts’ third-quarter revenue and earnings projections, and also detailed its development timeline for Macao and Singapore.

Sands revenue, net income and earnings per share fell by single-digit percentages compared to the third quarter of 2018 with the decline attributed to no longer having a revenue stream after the sale of its Sands Bethlehem property in Pennsylvania to an affiliate of Alabama’s Poarch Band of Creek Indians for $1.3 billion. That deal closed in March.

Sands Bethlehem accounted for net revenue of about $138 million in the third quarter of 2018.

The company had mixed results by property in the quarter that ended Sept. 30 with net revenue up in Las Vegas, Singapore’s Marina Bay Sands and the Sands and Plaza-Four Seasons properties in Macao, but down at Sands Cotai Central, the Venetian Macao and the Parisian in Macao.

The company reported net income of $669 million, 69 cents a share, on revenue of $3.25 billion for the quarter, compared with $699 million, 73 cents a share, on revenue of $3.37 billion a year earlier.

A survey of analysts had projected an average earnings per share of 75 cents and revenue of $3.28 billion.

The company paid a 77-cent-per-share dividend for the quarter and the company’s board of directors authorized an 8-cent increase in the annual dividend for 2020 to 79 cents per quarter.

Investment moves

Officials also highlighted the company’s investment timeline in Macao. About 290 new suites in the Grand Suites at Four Seasons Macao will come online in mid-2020 and 370 new suites in the Londoner Tower Suites in late 2020. The rethemed Londoner Macao will add a third European-themed destination resort with additional lodging, retail and entertainment with phased openings throughout 2020 and 2021.When completed, Sands will own a dominant 45 percent market share of the 29,000 rooms operated by casino companies in Macao.

In April, the company announced a $3.3 billion investment in nongaming amenities in Singapore with development of a 15,000-seat arena and a 1,000-suite luxury tower next door to its Marina Bay Sands property.

Sands officials also learned that a casino exclusivity agreement in Singapore between the government and Sands and the Genting Group, operators of the other Singapore casino resort, was extended to the end of 2030.

Sands shares rose 60 cents, 1 percent, to $59.22 a share in light trading Wednesday. In after-hours trading, the issue fell 1 cent to end at $59.21 a share.

’Best days of Las Vegas are ahead’

Responding to an analyst’s question, Chief Operating Officer Rob Goldstein acknowledged the changing Las Vegas market.

“We keep focusing on the room product, the suite product, more attractions, more (food and beverage),” Goldstein said. “I’m very pleased where our casino’s going. We’ve seen nice baccarat play throughout the year. It was a soft quarter relative to the previous, but the mass and premium mass growth opportunities are here. It’s a lodging dominant market and will continue to be.

“Vegas was gaming-centric when I started and now it’s lodging-centric and the guy sitting next to me (Adelson) had a lot to do with that. The best days of Las Vegas are ahead of us as more MICE space (meetings, incentives, conferences and exhibitions) comes to the market, as more things happen here. We welcome the competition and welcome all the wonderful things that are happening all over town. I don’t think you can focus on Vegas gaming for a quarter or for a week or for a month and get too excited either way. It’s going to be a steady drawing to a better place.”

Goldstein said the days of Las Vegas attracting top players from Asia may be over as a result of improvements in Macao.

“I don’t think you’ll see as much Asian play in Las Vegas,” Goldstein said, “because the options in Asia are so damn good. We still see great players show up occasionally, but the days of us dominating Asian play are over and the days of Vegas becoming the greatest lodging market in the world are here. We want to be part of that transitional shift and Sheldon (Adelson) authored it 20 years ago with his convention-based focus.”

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

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

Don't miss the big stories. Like us on Facebook.
Business Videos
Vegas Changes Everything: Grandma - LVCVA ad
"Grandma" is a new television spot from the Las Vegas Convention and Visitors Authority prepared to entice visitors to come during the Thanksgiving and Christmas holidays. (Visit Las Vegas/YouTube)
Vegas Changes Everything: Chaos - LVCVA ad
"Chaos" is a new television spot from the Las Vegas Convention and Visitors Authority prepared to entice visitors to come during the Thanksgiving and Christmas holidays. (Visit Las Vegas/YouTube)
New allegations involved Steve, Elaine Wynn - VIDEO
The new allegations were presented Friday in a motion that included a 2018 affidavit, alleging former hairstylist Jorgen Nielsen tried to convince a friend to say Steve Wynn raped her and that she bore his son. The affidavit also included new allegations suggesting Elaine Wynn and Nielson orchestrated the assault scandal. (Renee Summerour/Las Vegas Review-Journal)
Fitness chain Life Time acquires former Sullivan Square site
Fitness chain Life Time has acquired the former Sullivan Square site in Las Vegas for $14 million. The southwest valley property, across the street from Ikea, is little more than a giant hole in the ground. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Fashion Outlets of Las Vegas in Primm outlet mall changing its name - VIDEO
Chad Dillow, co-owner of Step Right Up, is building his attraction at Prizm Outlets, which recently changed it name from Fashion Outlets of Las Vegas, in Primm. It will include 3D trick art, ax throwing, escape rooms and carnival-themed games. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
O.J. Simpson files lawsuit against The Cosmopolitan over TMZ story - VIDEO
A lawsuit filed Thursday alleges that The Cosmopolitan of Las Vegas defamed O.J. Simpson when hotel employees told TMZ he was kicked out of the casino “for belligerence” in November 2017. (James Schaeffer / Las Vegas Review-Journal)
Phil Maloof on selling his Palms Place penthouse.
Phil Maloof sold his 59th-floor penthouse at Palms Place. (Eli Segall/Las Vegas Review-Journal)
Bleutech announces Las Vegas land purchase deal
Bleutech Park Properties reached a purchase agreement for 210 acres at Las Vegas Boulevard and Cactus Avenue, project spokesman Tom Letizia announced Tuesday, Nov. 5, 2019 at a news conference at the M Resort. (Elizabeth Brumley/Las Vegas Review-Journal)
Stolen Dodge Challenger found, suspect arrested - VIDEO
A $250,000 custom-built Dodge Challenger was stolen on Oct. 30, 2019, just before it was to be displayed at the Specialty Equipment Market Association trade show in Las Vegas this week. The thief was found by an Nevada Highway Patrol trooper, who rammed the trooper's car with the Challenger and got away. The suspect was ultimately arrested and the car recovered. (Las Vegas Review-Journal)
Terbine's, a tech firm, decision to relocate business from Bay Area to Las Vegas
Terbine's, a tech firm, decision to relocate business from Bay Area to Las Vegas. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
A walk through the historic Huntridge Theater in Las Vegas - VIDEO
The Huntridge Theater became a musical venue in 1992 and was a staging ground for groups on the rise and alternative superstars, from Smashing Pumpkins to Sarah McLachlan, the Deftones, Nine Inch Nails, Green Day and Fugazi. The venue has been closed since 2004. This video, taken on Oct. 31, 2019, shows what's left of the theater after 15 years. (David Guzman/Las Vegas Review-Journal)
MGM Resorts International looking to sell another property
MGM Resorts International is working to sell its MGM Grand property on the Las Vegas Strip. (Renee Summerour/Las Vegas Review-Journal)
Developer Sam Cherry reveals plans for shareDOWNTOWN.
Mayor Carolyn Goodman and Councilwoman Olivia Diaz will attend this event where plans are revealed for a future apartment complex in the Arts District. (Shea Johnson/Las Vegas Review-Journal)
Las Vegas Convention Center expansion update - VIDEO
Take a drive outside of the new Las Vegas Convention Center expansion project. (Severiano Galvan/Las Vegas Review-Journal)
Binion's debuts a spinning bar overlooking Fremont Street Experience - VIDEO
Binion's debuted its spinning bar inside the Whiskey Licker Up Saloon. The Rotating bar only goes at one full rotation per 15 minutes overlooking the Fremont Street Experience. (James Schaeffer/Las Vegas Review-Journal)
Day 3 of the 2019 Global Gaming Expo
Day 3 of the 2019 Global Gaming Expo took place at the Sands Expo and Convention Center in Las Vegas Wednesday, Oct. 16, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Southern Nevada could set a new resale-price record in coming months.
The median sales price of previously owned single-family homes – the bulk of the market – was $310,000 in September. Before the economy crashed last decade, prices peaked in June 2006 at $315,000, according to the Greater Las Vegas Association of Realtors.(Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Walmart container park in Henderson - VIDEO
Henderson could be home to a container park associated with a Walmart Inc. initiative. (Las Vegas Review-Journal)
Recession lessons could help Las Vegas face next slump - VIDEO
While the last economic downturn had a dramatic impact on local casinos, most experts expect the industry will be better able to weather the storm during the next recession. (Mat Luschek / Las Vegas Review-Journal)
St. Rose Parkway Construction - Video
St. Rose Parkway continues to have construction along the six-and-a-half mile road. Review-Journal studio host Aaron Drawhorn and business reporter Eli Segall go over the construction projects that are coming to Henderson.
MGM and victims of Oct. 1 reach settlement agreement - VIDEO
MGM Resorts International and lawyers representing potentially thousands of victims of the Oct. 1, 2017, mass shooting on the Las Vegas Strip have reached a tentative settlement of between $735 million and $800 million. (Mat Luschek /Las Vegas Review-Journal)
Live music and EDM dominate the night on day 2 of A’Le’Innstock
After sunset bands rocked the crowds at A’Le’Innstock in Rachel, Nevada on the second night of the event.
iPhone 11 Release
Local Las Vegas long time Apple product consumer shares her excitement for the new iPhone 11 release Downtown Summerlin. (Elizabeth Page Brumley/Las Vegas Review-Journal)
Lihi Levin talks about a mobil app Dropit - VIDEO
Lihi Levin, regional manager at Dropit Shopping, talks about a mobil app Dropit. The app lets customers leave their shopping bags at a store then have them delivered the same day to their home or hotel so they can shop without carrying multiple bags all day. (Bizuayehu Tesfaye Las Vegas Review-Journal) @bizutesfaye
North Las Vegas company prepares for Mars - VIDEO
Robert Bigelow and his Bigelow Aerospace manufacturing facility played host to eight NASA astronauts and 60 engineers this week getting to know the company’s B330 autonomous, expandable space station. (Elizabeth Brumley/Las Vegas Review-Journal)
Las Vegas developer talks about a new apartment complex called “the yoU”
Frank Marretti lll, founder of G2 Capital Development, talks about his new apartment complex called “the yoU” near UNLV. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Steel cables will hoist roof at Allegiant Stadium - VIDEO
Stainless steel cables are being put into place at Allegiant Stadium to begin the process of putting the roof on the 65,000-seat stadium in Las Vegas. Stadium Chief Operating Officer Don Webb explains how the cables will be used to get the roof put on the future home of the Raiders and UNLV football. (Heidi Fang/Las Vegas Review-Journal)
The last remaining Sigma Derby game in Las Vegas
Derek Stevens, owner of the D Las Vegas, talks about the last remaining Sigma Derby horse racing game in Las Vegas inside his casino floor. (Erik Verduzco/Las Vegas Review-Journal)
Popeyes Spicy Chicken Sandwich Review
Janine Blake of Las Vegas gives her review of the new Popeyes Spicy Chicken Sandwich at the restaurant’s location on west Bonanza Road on Thursday, Aug. 22, 2019,
SuperZoo 2019 takes over Mandalay Bay in Las Vegas
SuperZoo 2019 show for pet retailers brought pet products of all description to the Mandalay Bay Convention Center in Las Vegas. (Heidi Knapp Rinella/Las Vegas Review-Journal)
THE LATEST