Cotai continues to drive Las Vegas Sands higher

Las Vegas Sands reported that its first-quarter earnings rose 36% than a year ago at USD 776.2 million, mostly on stronger results at the casino and resort operator’s Macau holdings. Excluding one-time items, adjusted earnings rose to 97 cents from 71 cents. 

Sands Cotai Central continues to be a driver of growth with EBITDA more than doubling from a year ago to US$ 265.2 million. But that continues to pull from Sands Macau on the Macau Peninsula, which had just a 1.2% increase in revenue and a 5.4% drop in EBITDA.  

In Singapore, results continue to be mixed with EBITDA up on a stronger than normal win percentage but a 29% drop in VIP play and a 3% drop in mass-market play. Singapore is still a highly profitable resort but it hasn't been a growth driver in the way Macau has been.

Las Vegas Sands continues to be a leader in Macau and a beneficiary of continued increased traffic on Cotai, where it has a dominant presence. That will continue to be the case as Macau grows and the company's revenue will outpace Macau as a whole.

Analysts polled by Thomson Reuters expected per-share profit of 94 cents and revenue of $3.91 billion. Operating income grew 38% to US$ 1.14 billion, compared to US$ 826.7 million a earlier, driven by growth at the company’s Macau unit.

At Sands China, the company’s majority-owned Macau subsidiary, net revenue rose 35% to US$ 2.72 billion, while net income 66% to US$ 751.9 million. Net revenue from the company’s Marina Bay Sand property in Singapore rose 5.1%, while the Las Vegas operations’ top line fell 7%.