1 Way Las Vegas Sands Makes Easy Money in Asia

There's no disputing that Las Vegas Sands is the most profitable company in its industry. In 2014, the company posted $2.84 billion of net income, well ahead of Wynn Resorts with $732 million for the year, and MGM Resorts International 's loss of $150 million.

The kinds of shops that are typically attracted to these resorts are luxury apparel brands and high-end jewelry shops, and Las Vegas Sands has been undergoing a "mall repositioning and tenant remix" geared toward bringing more high-performing (and high-paying) luxury brands to certain higher-end resort properties.

Source: Las Vegas Sands 2014 10-K presentation.

Las Vegas Sands CEO Sheldon Adelson had this to say during the Q4 2014 earnings conference call:

"Our combined retail mall operations in Asia achieved an operating profit just shy of US$0.5 billion in 2014. That makes us one of the largest and most valuable mall developers and operators in the world."

Declining gambling revenue, increasing profits

Even though gambling revenue has dropped significantly in Macau, Las Vegas Sands was still able to increase its total profit year over year in the fourth quarter of 2014. By contrast, Wynn experienced a year-over-year decline in net income and MGM posted a significant loss.

This recent win was due to Las Vegas Sands' diversification, not only regionally (it's the only one of these competitors with a resort in Singapore) but also from very well performing non-gambling segments, such as this retail segment. The strength and growth of Las Vegas Sands' retail segment is just one more reason to take a long-term bullish stance on this well-performing company, even at a time when casino operations in Asia look bleak.

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The article 1 Way Las Vegas Sands Makes Easy Money in Asia originally appeared on

Bradley Seth McNew owns shares of Las Vegas Sands. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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