Venetian posts loss despite increases in revenue, cash flow

Monday, Oct. 23, 2000 | 11:17 a.m.

The Venetian's parent company today reported a net loss of $4.68 million for the quarter ending Sept. 30, though both cash flow and revenues increased substantially over the year-ago quarter.

Though the loss by Las Vegas Sands Inc. was a reversal of the profitable trend started in the first quarter of this year, it was a large improvement over the $18.2 million loss recorded in the year-ago quarter. For the nine months ending Sept. 30, the Venetian has recorded a net profit of $10.8 million.

Bill Weidner, president of Las Vegas Sands, said results came in below analyst expectations because of a lower-than-normal table games hold.

Revenues for the quarter rose 46 percent, to $146.6 million, while cash flow shot up 93 percent to $40.7 million. During the year-ago quarter, however, construction was still proceeding on parts of the Venetian resort.

At the Venetian, revenues rose 42 percent to $137.8 million, while cash flow increased 80 percent to $36.2 million. Casino revenues rose 55 percent, to $81.9 million, while room revenue rose 27 percent to $45 million. Room occupancy reached 96 percent during the quarter, at an average daily room rate of $168.

Although the amount bet at the Venetian's table games rose 62 percent in the quarter, to $294.1 million, the house's "hold" on these games declined from 21.4 percent to 18 percent. Slot revenue was $28.1 million, or $141 per machine per day, compared to $22.5 million, or $107 per machine per day, in the year-ago quarter.

At the Grand Canal Shops, rental revenues were $8.9 million, up from $3.2 million in the year-ago quarter, while cash flow was $4.5 million, up from $900,000. Earnings for the past nine months have been reduced by $1.3 million because of "tenant disputes related to construction delays in 1999 and rent commencement dates contingent upon completion of the walkover bridge to the west side of the Strip."

The Venetian reported a $4 million increase in interest payments for the quarter, to $30.6 million. This was caused primarily by increased interest rates and additional debt taken on late last year during the completion of the resort. The company reported $1.65 million in corporate expense, a category not included in the 1999 results, while the Venetian's operating expenses rose 32 percent to $101.5 million.