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Las Vegas Sands 3Q earnings top forecasts: Singapore bright

Las Vegas Sands 3Q earnings declined due to a 46-percent drop in profit at its Macau unit, though the figure was better than expected and Singapore proved a bright spot.

Adjusted net income decreased to $529.8 million, or $0.66 per diluted share, compared to $675.7 million, or $0.84 per diluted share, in the third quarter of 2014. That beat estimates compiled by Capital IQ by three cents.    

Net revenue for the third quarter of 2015 decreased 18.1 percent to $2.89 billion, below estimates of $2.95 billion.

Consolidated adjusted property EBITDA of $1.05 billion decreased 18 percent.

Net revenues for Sands China decreased 28.8 percent to $1.66 billion with adjusted property EBITDA down 32.8 percent to $545.0 million. Net income decreased 46.8 percent to $343.2 million.

“While the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter, our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows allowed us to again deliver in excess of one billion U.S. dollars of adjusted property EBITDA during the quarter and weather this cyclical downturn better than the industry overall,” chairman and CEO Sheldon Adelson said in a statement.

The Venetian Macau saw a 9 percent occupancy drop and 20 percent drop in revenue per available room, and Sands Cotai Central saw a 17 percent RevPAR drop YoY.

LVS noted the increase in rooms offered to the mass segment from rooms that had previously gone to junkets, UBS said in a note.

“With Studio City opening next week, and several other properties opening in the next few months, LVS noted that the additional supply will grow the market in the long term but it’s not clear if it will happen when the properties first open,” said analyst Robin Farley.

Despite the negative impact of the stronger U.S. dollar, adjusted property EBITDA at Marina Bay Sands in Singapore increased 10.8 percent year-over-year to $389.7 million in the current quarter, driven by growth in mass play from visitors to Singapore and healthy Rolling Chip volume.

Hold-normalized EBITDA increased 12.2 percent to $411.3 million. The property generated record mass gaming win-per-day in local currency terms while hold-normalized adjusted property EBITDA increased 22.4 percent year-over-year on a constant-currency basis.

Las Vegas Sands said it was increasing the company's recurring common stock dividend for the 2016 calendar year to $2.88 per share, an increase of 10.8 percent.

Shares in Las Vegas Sands jumped in after-hours trading in U.S., gaining almost 4 percent.


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