Jump in Singapore revenue helps Las Vegas Sands double its 3rd-quarter profit

2011-10-31

Reading time 1:42 min

(Singapore).- Casino-resort developer and operator Las Vegas Sands said last week that its third-quarter net income doubled from a year earlier as it kept a tight rein on operating expenses. A 26.2 % increase in revenue also helped - including a 63 % jump in Singapore, it said. LVS generates roughly 83 % of its revenue in Asia and the rest in the US.

The company’s billionaire CEO, Sheldon Adelson, said the Marina Bay Sands casino in Singapore would have been even more profitable had it not gotten somewhat unlucky - it won slightly less from gamblers than expected, given the amount customers wagered. Sands’ net income rose to us$ 353.6 million from us$ 168 million and its revenue rose to us$ 2.41 billion from us$ 1.9 billion. “I like them apples,” Adelson said during a conference call with analysts.

Excluding one-time items, Sands earned 55 cents per share, beating Wall Street’s average estimate for adjusted earnings of 52 cents per share. Analysts expected revenue of us$ 2.34 billion. Sands shares rose us$ 1.66t, after hours after ending regular trading up us$ 1.93, and closing at us$ 45.40.

Adelson teased analysts who underestimated the company’s Singapore business. “Please keep an eye out for one of our egg-wiping face towels, which you should be receiving shortly,” Adelson said. He said the company will keep growing for several reasons, including the opening in about five months of the first phase of Sands Cotai Central in Macau in China, which will include 1,800 hotel rooms plus amenities and space for gambling.

The company’s revenue in China rose 11.1 percent to us$ 1.2 billion, compared with us$ 1.08 billion during the third quarter last year. In Las Vegas, revenue rose 19.5 % to us$ 347.4 million. Revenue at the company’s casino in Bethlehem, rose 28.9 % to us$ 106.7 million.

Operating expenses increased much more slowly, rising about 17 % from a year ago. Sands said it had us$ 3.95 billion in unrestricted cash and us$ 9.74 billion in outstanding debt as of September 31. When asked what the company might do with the cash, Adelson said the shareholders in his family might push for a dividend — which he could use to buy another plane or boat — and that the company is considering opportunities to expand further in Asia and the United States.

Adelson said he was most interested in Korea or Japan. “Everybody knows that we are the most probable winner of any competition out there, but it all depends where and when,” he said.