Las Vegas Sands turns in best performance since 2008 as Macau improves
Gaming giant Las Vegas Sands beat expectations as it reported first quarter earnings for 2017 last week. The company turned in its best quarter since 2008, according to Sheldon Adelson, its chairman and chief executive officer. This is a clear indication of the company’s strength in its Las Vegas operation, but also of the recovery in the Macau market, which was widely seen as heralding a return to form for the Chinese luxury sector earlier this year.
Las Vegas Sands share price is up 11% so far this year
SOURCE: Yahoo Finance
Adelson told investors on the company’s earnings call:
“After a challenging period the Macau market is growing again – and its growth rate has been accelerating for three consecutive quarters.” He also opined on future expansion, looking towards Japan as a possible market:
“Japan is what everybody is talking about. We have been informed by people in the know in Japan that LVS (or Las Vegas Sands) is by far, not just marginally, but by far ahead of the other competition,” when it comes to getting approval for an integrated resort.
The interest in Japan comes from last year’s decision to legalise casino resort gaming, making it possible to operate casinos within wider complexes including hotels and more. Adelson was careful to point out that nothing was official yet in regards to Japan, and also that the company was looking at other Asian markets: Vietnam, Thailand, and South Korea.
Las Vegas Sands delivered earnings per share of 66¢ in the first quarter of the year against expectations of 62¢. Revenue rose 14% from the year-ago quarter, while EBITDA rose by 25% over the same period.
Dominion holds Las Vegas Sands in its Global Trends Luxury Fund.
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