evenue rose to us$ 1.05 billion from us$ 636.3 million in the same period in 2006, benefiting from a full quarter of operation of its newest casino in the Chinese gambling hub of Macau, The Venetian Macao, which opened August 28.
On an adjusted basis, earnings totaled us$ 71.1 million. Analysts surveyed by Thomson Financial expected a profit of 35 cents a share on revenue of us$ 1.1 billion.
Adelson, the Sands’ chairman and majority shareholder, said revenues were booming in Macau and confirm that the Las Vegas Strip model of casino-resorts serving as entertainment, convention and retail hubs could work in Macau.
Casino revenue in Macau increased 46 percent over the previous year to us$ 10.3 billion in 2007, while the average visitor stay in Macau rose to 1.6 nights in October, up from 1.2 nights the previous January, the company said.
"I think that the facts clearly belie and contradict the doom-sayers’ proclamations," Adelson said on a conference call with analysts. "The validation of the integrated resort concept on the Strip has been resoundingly proven."
The company partially opened the us$ 1.9 billion Palazzo on December 30 on the Las Vegas Strip and held its grand opening last month. Quarterly revenue at The Venetian and Palazzo in Las Vegas fell 10.9 percent from a year earlier to us$ 258.7 million, and dropped 16.7 percent at the Sands Macao to us$ 288.2 million. Revenue at the new Venetian Macao came in at us$ 500.4 million.
Traffic at Sands Macao was partly cannibalized as gamblers visited The Venetian Macao. "It’s going to take a while for the Macau market to really shake out," said Steven Wieczynski, an analyst at Stifel Nicolaus & Co. "If you can stomach the next six months, 12 months, and you can figure out where Macau’s going, this is a really good long-term growth story."
Shares of Las Vegas Sands fell us$ 6.40 to us$ 81.45 on Monday before the results were announced. They gained us$ 1.35 to us$ 83 in after-hours trading.
Las Vegas Sands plans to invest us$ 12 billion to ua$ 14 billion to build 20,000 hotel rooms on an area of reclaimed land in Macau called the Cotai Strip by 2010 under such brands as Four Seasons, Sheraton and St. Regis. It also plans to open the us$ 1.4 billion Marina Bay Sands in Singapore and the us$ 600 million Bethworks Casino in Pennsylvania next year.