Two Way Hard Three | Las Vegas Casino & Design Blog

February 11, 2009

UPDATED: Las Vegas Sands Reports Q4 2008

Posted by Hunter

The Q4 2008 numbers are in for LVS - the first major operator to report their results.

Looks like an operating loss of $34.4 million, down from income of $133.6 million in the same quarter last year (GAAP). Adjusted, it's a $17.1 million loss vs. a previous year Q4 income of $71.1 million.

In Las Vegas, occupancy was 93.7% for the quarter - better than I expected (though not broken out by property). In Macau, occupancy was at 90%. While not providing figures, the company admits that the Four Seasons Cotai has been slower to ramp-up than they would have liked.

The company believes it can save $250 million a year through a new efficiency program (read: likely layoffs, hour reductions, etc...).

They have gotten their average borrowing rate down to around 3%, which is pretty good considering it used to be almost twice that.

We will no doubt be discussing tomorrow on our next episode of the Vegas Gang.

Updated: Management said that they don't see any market segment where they could really raise room rates other than perhaps in the group segment.

They are working to try to combat the recent national sentiment that seems to be pointing at Vegas based business trips as some sort of 'boondoggle'.


Read archived comments (4 so far)
February 11, 2009 6:25 PM Posted by Doug

The national sentiment against Las Vegas business trips was made obvious by Goldman Sachs canceling their conference at Mandalay Bay and moving it to San Francisco.

I don't think LVS is in as much financial trouble as MGM-Mirage. But the LVS stock is listed in some financial journals as 'very high risk'.

February 12, 2009 10:57 AM Posted by David McKee

If Compliance Report is correct and Dubai World is actually having second thoughts about CityCenter, I'd be scared witless, especially if owned MGM stock.

February 13, 2009 7:55 AM Posted by Tom M.

Interesting side note, The Sands Bethlehem just opened up their jobs website at the end of Jan. I live about 30 min from this place and I didn't even know it was under construction. It is due to open 2nd quarter this year. Not as exciting as an Encore opening but this is all I have to look forward to for the time being.

February 19, 2009 4:51 PM Posted by Anthony

LVS sued again. Since I lost money in the stock market, can I sue everyone I invested in and blame it on their bad management, ha !