Yesterday Las Vegas Sands Corp reported financial results for the quarter ended 31 December 2007. An increase in net revenue of 64.8% to a record US$1.05 billion compared to US$636.3 million for the fourth quarter of 2006 was somewhat countered by a decrease in operating income due to rising operating costs. Pre-opening expenses for The Palazzo and other properties yet to open in Macau, Singapore and the US accounted for a US$19.5 million increase in costs.
Full year net income was up 31.9% to US$2.95 billion. Adjusted net income was US$309.5 million compared to US$506.1 million for 2006. The decrease was attributed mainly to the full-year impact of costs related to the company’s global growth plans. In a statement William P Weidner, LVS president and COO, said that the company was pleased with the fourth quarter operating results, which reflect the steady execution of its global growth strategy.
“In Asia, our efforts to transform Macao into Asia's premier business and leisure destination continue to bear fruit. The strong visitation to the Cotai Strip's anchor property, The Venetian Macao, and the strong performance of the property's hotel, entertainment, retail, gaming and group meeting businesses, reflect that we are delivering on the fundamental goal and commitment we share with the people of Macao, Hong Kong and all of Southern China -- the transformation of Macao into Asia's premier business and leisure destination.”
Commenting on the company’s performance in Las Vegas, Weidner added, "In Las Vegas, The Venetian continued to perform well, delivering strong gaming volumes as well as record fourth quarter REVPAR. Additionally, on December 30th, we opened The Palazzo, our newest resort on the Las Vegas Strip. We expect this breathtaking 3,066-suite hotel to set a new standard for luxury and opulence in Las Vegas, and together with The Venetian and The Sands convention center, to provide an ideal platform for growth in Las Vegas in the years ahead."
Summing up Weidner concluded, “The successful opening of The Venetian Macao is only the initial step in delivering on our commitment to lead the transformation of Macao into Asia's premier entertainment-based destination resort, and the leading host for tradeshows and conventions in the region. We have much work ahead of us as we continue to partner with our constituencies in Macao, Hong Kong and the wider region to realize the vision of transforming Macao into Asia's premier business and leisure destination.
"In Singapore, we continue to make steady progress on construction and other development activities of the Marina Bay Sands, which remains on track for an opening in late 2009. We currently have an average of more than 2,000 workers on site, with work progressing on a 24/7 basis. The Marina Bay Sands will feature approximately 2,500 hotel rooms, approximately 1.2 million square feet of flexible meetings, incentive, convention, food and beverage, and exhibition space, approximately 850,000 square feet of retail space, three large entertainment venues, and gaming space, which will include our high-end Paiza Club.
"In Bethlehem, Pennsylvania, we continue to advance our construction activities on Sands Bethworks. Utility upgrades and site grading have now been completed, with construction of the building foundation systems to begin shortly.” The 124-acre destination resort will feature, in its first phase, a hotel, retail space, 5,000 slot machines, a multipurpose event centre, and a variety of dining and entertainment options. The resort will also be home to the National Museum of Industrial History, an arts and cultural centre, and the broadcast home of the local PBS affiliate. (E-02.05.08)
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