Venetian profit improves, firm optimistic on Macau

Tuesday, April 29, 2003 | 11:07 a.m.

The Venetian hotel-casino on the Las Vegas Strip today reported improved revenue and net income in its first quarter over the same period a year ago, citing increased casino revenue and steady occupancy rates.

Venetian owner Las Vegas Sands Inc. reported net income for the quarter ended March 31 of $13 million compared with $5.1 million for the comparable period in 2002. The company reported revenue of $158.7 million, a 16.3 percent increase over the $136.4 million reported in the first quarter of 2002.

The company said casino win was up dramatically and room occupancies maintained high levels while rates increased. The company also said the beginning of construction of a casino in Macau already has paid off for the company with high visibility to Asian high-rollers.

"We believe that our group room business strategy again has proven resilient during difficult economic times, as evidenced by the company's record average daily room rates of $217, along with average room occupancy of 97.4 percent in the first quarter of 2003, which is consistent with average room occupancy of 98 percent in the same period of 2002," said William Weidner, president and chief operating officer of the company.

"In addition, our development activities in Macau, a special administrative region of the People's Republic of China, raised our profile in Asia, and we experienced an upturn in Asian high-end casino business as a result," Weidner said.

Weidner said the SARS outbreak in Asia has not surfaced in Macau, but the disease has had an effect on visits to the Chinese city.

"So far, Macau has not been affected by SARS and a team from the World Health Organization was there this past week to try to find out why," Weidner said. "But it has affected the area with the restricted movement of tourists in the area."

Weidner said Macau "has been packed" by residents of Hong Kong "who don't have any place to go."

But Manuel Joaquin das Neves, director of Macau's Gaming Inspection and Coordination Bureau, told the Las Vegas Sun on Monday that visitation was off 20 percent to 30 percent in April and that a Chinese holiday in May has been ordered curtailed from seven days to one, which could discourage travel.

Venetian officials also in a conference call today said that about 43,000 people have applied for 3,500 jobs at the company's Macau property. They said the enthusiasm for employment at "the area's first Western style casino" was beyond their expectations.

Venetian Las Vegas casino revenue was $73.3 million for the quarter, compared with $50.5 million for the same period a year ago with table-game volume flat, but slot-machine handle up 13.2 percent to $449.4 million for the quarter.

While food and beverage revenue was off for the quarter and retail and other operating revenue was flat, the firm's mall subsidiary, the Grand Canal Shoppes, reported increased rental revenue of 14.5 percent to $9.5 million for the quarter.

The Venetian said it's preparing to open a 1,000-room tower in June and planning is proceeding for another megaresort between The Venetian and Steve Wynn's Le Reve resort on Sands Avenue.