Las Vegas Sands Beats Estimates on Asia Growth
July 27 (Bloomberg) -- Philip Tulk, head of Asian conglomerates and gaming research at Royal Bank of Scotland Group Plc, talks about Asia's casino stocks. Las Vegas Sands Corp., the U.S. casino company expanding in Asia, reported second-quarter profit that beat analysts’ estimates, on Singapore and Macau growth and a recovery in Las Vegas. Tulk speaks in Hong Kong with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Sands China Ltd. (1928), the Hong Kong- listed casino company controlled by billionaire Sheldon Adelson, doubled second-quarter earnings as gambling surged at its Macau venues.
Net income rose to $267.4 million in the three months ended June 30 from $133.6 million a year earlier, the Hong Kong-based company said in a filing today. Sands China also named Edward Tracy to become chief executive officer, with Adelson remaining as chairman.
Chinese gamblers are betting more on high-stakes baccarat and increasing spending on hotel rooms as the company taps growing demand for slot machines to boost Macau revenue. Adelson’s Las Vegas Sands Inc., which earlier today reported a rise in its own earnings, owns about 70 percent of Sands China.
“This report could be the catalyst we have been waiting for at both Sands China and Las Vegas Sands,” Anil Daswani, an analyst at Citigroup Inc. in Hong Kong, said in a note to clients today.
Sands China rose 2.1 percent to HK$21.75 at 9:53 a.m. in Hong Kong, extending its gain this year to 27 percent.
At Sands China’s Venetian casino in Macau, adjusted property earnings before interest, taxes, depreciation and amortization, or Ebitda, climbed 34 percent to $258.4 million. Ebitda at Sands Macau rose 18 percent to $95.6 million.
Las Vegas Sands Adelson, whose Marina Bay Sands is one of only two casinos in Singapore, predicted in May his company would generate more than $3 billion in cash flow this year as gambling in Asia accelerates and Las Vegas recovers.
Las Vegas Sands’ net income was $367.6 million, or 45 cents a share, compared with a loss of $4.68 million, or 1 cent, a year earlier, the Las Vegas-based company said today in a separate statement. The figures reflect preferred dividend payments. Profit excluding some items was 54 cents, more than the 44-cent average of 23 estimates.
Quarterly sales jumped 47 percent to $2.35 billion, reflecting gains from Marina Bay Sands, which opened in April 2010. Singapore cash flow was $405.4 million in the quarter.
“Singapore is now the biggest profit contributor to Las Vegas Sands,” Jon Oh, a New York-based analyst for CLSA Asia- Pacific Markets who recommends buying the stock, said in a note to clients. “While market seasonality remains unclear, we urge investors to pay less attention to quarterly volatility and instead focus on the medium-term cash-flow potential in Singapore.”
Marina Bay CEO The company named George Tanasijevich chief executive officer of the Marina Bay Sands, Chief Operating Officer Mike Leven said yesterday on a conference call. Tanasijevich had been interim CEO since January. The Wall Street Journal reported his permanent role earlier yesterday.
Las Vegas Sands rose 12 cents to $46.30 in New York Stock Exchange composite trading yesterday.
Las Vegas is staging an uneven recovery from a record two- year drop in gambling and conventions. Gambling revenue on the Strip increased 5.2 percent this year through May, according to the Nevada Gaming Control Board.
Las Vegas Sands said it has enough workers to start opening its project on sites 5 and 6 of Macau’s Cotai Strip from the first quarter of next year. permanent role earlier today.
The company’s Macau cash flow rose 28 percent to $391.6 million. Macau, the only place in China where casinos are legal, saw gambling revenue surge 58 percent last year and 45 percent in the six months ended June 30. |
