Las Vegas Sands beat expectations in Q2, Macau rebound in full swing
Las Vegas Sands Corp. reported second quarter results that beat expectations on both earnings and revenue, demonstrating the extent of the luxury turn around in Macau. Earnings per share came in at $0.73, easily beating consensus estimates of $0.61 by an impressive 19.7%. This is an increase of 37.7% year-on-year – a reflection of the higher revenues that the gaming giant accrued over the quarter. That revenue came in at $3.14 billion, beating out analysts’ forecasts of $3.02 billion and increasing 18.6% from the year-ago quarter. The driving forces behind these results were the recovery in Macau, where the company saw solid performance, and strength in its Las Vegas properties.
Las Vegas Sands’ share price is up by 17% year to date
SOURCE: Yahoo Finance
Las Vegas Sands highlighted the recovery in Macau, where market-wide gross gaming revenues rose by 21.9% year over year. The company’s CEO, Sheldon G. Adelson, explained Las Vegas Sands’ business in the region:
‘The Macao market is growing and its growth rate has been accelerating for four consecutive quarters. At the same time, the significant new supply that has been added on Cotai since 2015, amounted to over 8,000 hotel rooms and over US$13 billion of additional invested capital, has successfully been absorbed by the market. Our Macao operation is experiencing strong growth in mass gaming and non-gaming segments.”
He also added that the company had created a “new landmark” in the Parisian Macau. Describing this as a “must-see destination” he spoke the company’s strategy to “create a critical mass of interconnected resorts on Cotai” – the Parisian being the last piece of the puzzle. Now, the company holds almost 13.000 hotel rooms, four interconnected resorts, more than 840 stores across four shopping malls, and 2.5 million square feet of meeting and exhibition space. It also has four performance and event venues.
Meanwhile, in Las Vegas, the company continued to perform well. Net revenue from its operations in the area was up by an impressive 7.9% from the year-ago quarter, thanks to a 19.5% rise in casino revenues and a 15.6% increase in convention retail and other revenues.
Dominion holds Las Vegas Sands Corp. in its Global Trends Luxury Fund.
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