Leading international developer of multi-use integrated
Las Vegas Sands Corp.
) recently reported first-quarter 2013 adjusted earnings of 71
cents per share, outperforming the Zacks Consensus Estimate of 66
cents by 7.6% and the comparable year-ago quarter's earnings by
1.4%. The upside in earnings was caused by the company's strong
top-line growth and operational efficiency.
Quarterly net revenue climbed 19.5% year over year to $3.3
billion, in line with the Zacks Consensus Estimate. The rise in
quarterly revenues was aided by the company's strong Macau
business and growing Las Vegas business.
The operating margin has declined nearly 58 basis points (bps)
to 25.0% in the first quarter. The decrease was mainly
attributable to higher depreciation and amortization as well as
Consolidated adjusted property EBITDA (earnings before
interest, taxes, depreciation and amortization) surged 9.4% year
over year to $1.2 billion.
Property Level in Detail
(The Venetian Casino and The Palazzo)
Net revenue from the Las Vegas operations increased 7.0% year
over year to $411.5 million. Higher rooms, food and beverage as
well as convention, retail and other revenues and growing RevPAR
pushed up the segment's sales during the quarter. Adjusted
property EBITDA declined 2.1% to $113.4 million offsetting the
rise in the table games win percentage.
Sands Bethlehem, Pennsylvania
Sands Bethlehem in Bethlehem, Pa. opened the first phase of
its facilities for business on May 22, 2009. Net revenue at Sands
Bethlehem was $122.9 million in first-quarter, up 6.3% year over
year, driven by a 5.6% and 28.6% rise in casino revenues and
RevPAR, respectively as well as a higher occupancy rate.
Adjusted property EBITDA increased 8.7% to $29.9
Las Vegas Sands' integrated resort properties and other assets
in Macao are owned and operated by Sands China Ltd., which is a
majority-owned subsidiary of the company.
During the quarter, net revenue at Sands China of $2.02
billion jumped 39.3% year over year. Adjusted property EBITDA
amounted to $626.4 million, up by a massive 39% from the
The company's Macao business comprises of the following
Sands Macao revenues were down 11.1% to $310.3 million due to
an 11.3% decline in casino revenues and a 2.4% and a 1.3% drop in
average daily rate (ADR) and RevPAR, respectively.
The Venetian Macao
Net revenue increased 12.9% to $872.2 million at The Venetian
Macao, driven by a rise in traffic and increased casino revenues.
However, occupancy plunged 180 bps to 91.6% and RevPAR fell 7.0%
to $212 million at Venetian Macao.
Four Seasons Macao
Moreover, revenues at Four Seasons Hotel Macao and Plaza
Casino dropped 25.5% to $223.2 million as casino revenues
declined 27% year over year.
Sands Cotai Central
On Sep 20, 2012, the company successfully unveiled the second
phase of its Integrated Resort offering - Sands Cotai Central -
at the centre of the Cotai Strip after opening the first phase of
Resort offering on Apr 11, 2012. Net revenue at Sands Cotai
Central was $587.2 million.
We believe that facilities of Sands Cotai will drive
additional visitation in Macao and will further boost Las Vegas
Sands' market share in Macao with its high gaming potential. The
property witnessed a footfall of nearly 3.4 million during the
Bay Sands, Singapore
Revenue at Marina Bay Sands, which made its debut in April
2010, dropped 6.3% to $794.9 million during the first quarter
with lower Rolling Chip win and casino revenues. Sands enjoyed
RevPAR growth of 11%, driven by a higher average daily rate.
Las Vegas Sands has benefited from the continued improvement
in the Macau business. The company's Las Vegas business is also
recovering steadily. However, the company's Singapore business
remains sluggish. Further, the company's upcoming project at
Cotai will also face extreme peer pressure from several Chinese
Another casino operator,
Wynn Resorts Ltd.
) reported first-quarter 2013 earnings that were ahead of the
Zacks Consensus Estimates despite that fact that its revenue was
just in line with the same.
Las Vegas Sands currently carries a Zacks Rank #2 (Buy).
However, other casino operators such as
Monarch Casino & Resort Inc.
Multimedia Games Inc.
) are better placed at the moment with a Zacks Rank #1 (Strong
LAS VEGAS SANDS (LVS): Free Stock Analysis
MONARCH CASINO (MCRI): Free Stock Analysis
MULTIMEDIA GAME (MGAM): Free Stock Analysis
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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