Las Vegas Sands sees record revenue in 3Q on strength in Asia

By Steve Green

Published Wednesday, Oct. 27, 2010 | 1:30 p.m.

Updated Wednesday, Oct. 27, 2010 | 4:24 p.m.

With business booming in Macau and Singapore, Las Vegas Sands Corp. today reported a third quarter profit and record revenue.

Net revenue of $1.91 billion was up 67.3 percent from the third quarter of 2009, representing the opening of the $5.5 billion Marina Bay Sands in Singapore, continued strong results in Macau and even improvements in Las Vegas.

Net income attributable to common stockholders was $168 million or 21 cents per share vs. a loss of $123 million or 19 cents per share in the third quarter of 2009.

"We are incredibly pleased to report that records for revenues, adjusted property EBITDA and adjusted property EBITDA margin were achieved during the third quarter of 2010. Strong revenue growth and increases in operational efficiency in Macau and outstanding results at Marina Bay Sands in Singapore contributed to substantial margin expansion and industry-leading financial performance overall," Chairman and Chief Executive Sheldon Adelson said in a statement.

EBITDA means earnings before interest, taxes, depreciation and amortization.

The Venetian Las Vegas and the attached Palazzo, with a combined 7,100 suites, generated net revenue of $290.7 million, up from $229 million, as revenue per available room increased on improved hotel occupancy and group bookings while gaming volumes increased as well, the company said.

Despite increased competition from CityCenter and generally slow business in Las Vegas because of the recession, these properties generated adjusted EBITDA of $58.3 million, up 69 percent from the year-ago figure.

Las Vegas Sands said the Venetian's occupancy improved from 89 percent to 94 percent while revenue per available room per day increased from $152 to $156. Occupancy at the Palazzo increased 5.3 percentage points to 93.2 percent while revenue per available room improved 13.1 percent to $173.

Despite these gains, Las Vegas Sands executives on a conference call with analysts said they expected hyper-competitive conditions on the Strip to continue or even increase with the opening of the nearly 3,000-room Cosmopolitan in December.

Despite longtime acrimony with competitor Steve Wynn, Adelson quipped on the conference call that "I hope he opens up a new property" to generate excitement in Las Vegas.

Adelson said he's hopeful a deal announced this week in which the Las Vegas properties will be marketed by InterContinental Hotels Group will give the Sands and Palazzo an edge in filling their rooms at high rates.

Elsewhere:

• Sands China Ltd., the majority-owned subsidiary of the company in Macau, generated net revenue of $1.08 billion, up 27.7 percent.

• Marina Bay Sands, in its first full quarter of operations, generated net revenue of $485.9 million.

• Sands Bethlehem in Pennsylvania contributed net revenue of $82.8 million, up 31.4 percent.