For the Las Vegas Sands, its Macau operations are paying off big time. Its properties in Macau have helped to boost its earnings by a whooping 80 percent. The Las Vegas Sands which is Las Vegas-based operates the Palazzo and Venetian resorts, both of which are on the Strip. But it also has properties in Singapore and Macau. The company reported its earnings for the third-quarter recently. The company is listed on the (NYSE as LVS.
In terms of revenue, the company posted $3.57 billion which is an increase of 31.7 percent over 2012 third quarter results. It was reported that very strong gaming volume increased its cash flow in Macau by some 60.8 percent which amounts to about $784.3 million.
For its earnings, the company reports earnings of $809.3 million, and this is up 82 percent over 2012 third quarter earnings. It was reported that the Venetian Macau saw a 92 percent occupancy rate; this is off by some 2.2 points from 2012 third quarter results. However, it also reported a solid average daily room rate that came in at $242, and this is 6.6 percent higher than what it reported last year. As for earnings per share, they came in at 76 cents, which is about 81 percent higher over 2012 third quarter.
According to Sheldon Adelson, Chairman of Sands, the company has been prudent in managing its cash flow including its ability to bring a profit to shareholders and has been able to do this as the company maintains a solid balance sheet along with plenty of liquidity. This means the company can invest for growth. The company is one of the leaders in the Macau area and continues to grow in that region.
What all of this means is that the Las Vegas Sands has had yet another record quarter due to the efforts and revenues that are coming from Macau, which is leading the way. Sands officials openly attribute the Macau success to what they say is the city’s gradual transition from a simple, day-trip destination into a more lucrative overnight destination in its resorts. And because they have the most rooms, this is a winning situation for them.
The news gets better as more growth is possible as the Parisian property construction is now said to be ahead of schedule. It is planned open in 2015. Also, the new high-speed rail line from Macau into central China will be opening as well. In addition, the new Hong Kong-Zhuhai-Macau Bridge is planned to open in 2016. This bridge will allow motorists to cross from Macau to the Hong Kong airport in 20 minutes or less.
The Sands company is also keeping an eye on Japan where new gaming may be allowed in the near future. If all goes well, they company says it may build new resorts in Osaka and Tokyo. Sands is also looking at opportunities in South Korea which may be opening up within the next year or so if all goes well.