Las Vegas Sands reported their second quarter results today and the story is that net income is down this quarter, mostly due to higher costs.
Net income was $34.4 million from $109.3 million a year ago. Big drop... Well, they are about to open the Venetian Macau so they clearly have a reason to be spending money this quarter. Revenues were up to $612.9 million from $517 million so unless they get spend happy next time around, this is likely no huge deal.
http://www.reuters.com/article/marketsNews/idUKN0143840020070801?rpc=44
http://biz.yahoo.com/ap/070801/earns_las_vegas_sands.html?.v=1
Update: Looking at some of the numbers, at The Venetian in Las Vegas the ADR (average daily rate) was up $266, almost 10%. Other metrics like the drop were also up - fundamentals look solid.
http://biz.yahoo.com/prnews/070801/law176.html?.v=3
Technorati Tags: gaming industry, las vegas, lasvegas, lasvegassands, macau, venetian
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Wynn reports next week, I can't wait to see the numbers. These numbers may be proof, that the number of visitors being restricted in Macau are not hurting the numbers. I think Wynn should put up better numbers than these, and they are very equal companies, at least for today. in terms of size, and equal number of properties, and rooms. This will be drastically changing in the coming quarters though, as LVS size growns by huge numbers over the next two years. It will be interesting to see how well they can handle and deal with growing their company that quickly, from both a management and personal standpoint.
"Who cares about earnings?
Las Vegas Sands Corp. executives giddy about prospects for Macau"
http://www.lvrj.com/business/8869377.html
on August 2, 2007 4:55 AMRereading one of those articles Hunter linked, here's another quote from Weidner:
"We believe the combined Venetian and Palazzo complex will provide an excellent platform for profitable growth in Las Vegas for years to come."
Anyone care to speculate where growth is going to come from, other than rising room rates? LVS has stood pat in the real estate market the last few years while MGM and outsiders have snatched up just about every available parcel on the strip. Are they waiting for HET to start divesting properties? Somebody to fail? Content to expand in Asia?
"LAS VEGAS, Nevada -- Las Vegas Sands Corp. announced Wednesday it would open the $1.6 billion Palazzo on Dec. 20."
http://www.casinocitytimes.com/news/article.cfm?contentID=167768
I too was shocked how absent LVS has been from the LV real estate scene. Figured it was due to their intense focus on Macau. Perhaps Sheldy is perfectly content that Cotai will be such a bases loaded home run (The King told us so!), that he doesn't even need to worry about Vegas. The Venetian/Palazzo/Sands Convention Center complex in Vegas will be a money machine regardless.
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