Las Vegas Sands beats estimates on Asia casino growth
21 October 2013
Casino and resort company Las Vegas Sands Corporation (LVS) has posted a better-than-expected profit for the third quarter of 2013 thanks to continued growth in Asia.
The company, controlled by billionaire Sheldon Adelson, recorded a profit rise to 82 cents per share, excluding some items, in comparison to the average of 77 cents per share forecast by analysts.
LVS also said that revenue had increased by 32% to $3.6 billion (€2.6 billion), topping analysts’ predictions of $3.5 billion for the quarter.
Third-quarter net income grew to $626.7 million, a 79% increase on the $349.8 million the company recorded a year earlier.
The SVL subsidiary increased property earnings by 62% to $785.3 million, while profit in Singapore grew by 43% to $373.6 million.
Total gross gaming revenue in Macau rose by 20% to $11 billion in the quarter.
Adelson said improving rail and airport links to Macau were helping to support growth in the special administrative region.
“These infrastructure investments include the world’s most expensive and extensive high-speed rail system,” Adelson said.
Michael Leven, LVS president, also said that the company would pursue expansion across Asia.
“Japan would obviously be the most expensive investment we’ve ever made from a single property standpoint,” Leven said.
During the third quarter, LVS also repurchased nearly $300 million of stock and committed to spending $75 million per month under its $2 billion buyback authorisation.
Despite success in Asia, adjusted property earnings in Las Vegas declined by 11% to $87.1 million, while Pennsylvania dropped by 7.8% to $29.6 million.