Yesterday Las Vegas Sands reported financial results for the quarter ended 30 September 2010. Net revenue for the third quarter of 2010 was a record $1.91 billion, an increase of 67.3% compared to $1.14 billion in the third quarter of 2009. Consolidated adjusted property EBITDA in the third quarter of 2010 increased 136.9% to $645.2 million, compared to $272.3 million in the year-ago quarter.

Sheldon G. Adelson, chairman and CEO, stated, "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. We measure our financial success by the generation of EBITDA, not by our share of market revenue. We are therefore extremely proud to deliver an all-time quarterly record of $334.6 million of adjusted property EBITDA for our Macau operations, with both The Venetian Macao and Four Seasons Hotel Macao and Plaza Casino delivering substantial revenue and adjusted property EBITDA growth and margin expansion. In Las Vegas, increases in gaming volumes and hotel revenues allowed us to deliver $58.3 million of adjusted property EBITDA during the quarter.”

He added, "In Singapore, Marina Bay Sands, which just completed its first full quarter of operations, generated the highest quarterly adjusted property EBITDA and EBITDA margin from any single property in the history of our company. Marina Bay Sands produced $241.6 million of adjusted property EBITDA and an EBITDA margin of 49.7% during the quarter. Both gaming volumes and visitation to the property have continued to trend upward since our opening, and we are gratified by the overwhelming reception the property has received. One example of that growth is the increase in average daily adjusted property EBITDA of over 275% from May to October. We are proud that Marina Bay Sands has already enhanced Singapore's reputation as an international business and leisure destination. Looking ahead, we are confident that Marina Bay Sands will provide an ideal platform for strong growth and outstanding returns for our company."

The Venetian Las Vegas and The Palazzo enjoyed stronger gaming volumes, improved group booking volumes and improved hotel occupancy during the quarter. The Las Vegas operations delivered $58.3 million of adjusted property EBITDA for the third quarter of 2010, compared to $34.5 million in the third quarter of 2009. Table games drop increased 10.9% to $476.5 million and table games win percentage was 17.1% and above the 12.2% experienced in the prior year quarter.

Net revenues for Sands Bethlehem in Pennsylvania were $82.8 million and adjusted property EBITDA reached $16.4 million for the third quarter of 2010, the highest total since the opening of the property in May 2009. The introduction of 89 table games in July 2010 expanded the property's offerings and produced $72.9 million of table games drop with a win percentage of 13.0%. Slot handle at the property was $934.6 million for the quarter. Construction of the property's 300-room hotel tower is progressing and the hotel is expected to open in May 2011.

As of September 30, 2010, total debt outstanding, including the current portion, was $10.14 billion. Scheduled principal payments required in 2010 and 2011 total $37.9 million and $798.0 million, respectively. Capital expenditures during the third quarter totaled $523.1 million, including construction and development activities of $356.4 million at Marina Bay Sands, $146.9 million in Macau, $11.9 million at Sands Bethlehem, and $7.9 million in Las Vegas.

In the third quarter Sands’ businesses in Las Vegas accounted for just 15.2% of the company’s revenue. At yesterday’s conference call Adelson told investors that Sands’ business overall had never been healthier. The financial results for the quarter beat the expectations of many analysts. (E-10.28.10)

© Copyright 2010 CasinoCompendium



>>> return to archives
>>> return to frontpage