- Casino-resort operator Las Vegas Sands Corp. said Tuesday that it earned $367.6 million for the second quarter, reversing a loss of $4.7 million a year earlier as its revenue rose almost 50 percent. The company led by billionaire Sheldon Adelson said its results in Las Vegas improved as the company focused on attracting conventioneers and other business travelers and curbed spending on freebies to attract gamblers to slot machines and table games. At the Venetian and Palazzo casinos in Las Vegas, gambling revenue rose just 2.2 percent to $105.1 million as the company cut its promotional allowances nearly 60 percent.
- Most of Sands' $2.35 billion in revenue -- and most of the increase -- came in Macau, where it took in $1.21 billion. The company's revenue in Singapore was $737.6 million. In Las Vegas, where the company is based, revenue rose 18.2 percent to $332.5 million.
- Sands said Marina Bay Sands in Singapore is on its way to becoming the most profitable casino-resort ever. It opened last year.
- Sands said its adjusted earnings were $438.6 million, or 54 cents per share, for the period that ended June 30. That beat analysts' average forecast for adjusted profit of 43 cents per share. Analysts expected revenue of $2.2 billion, versus $2.35 billion reported. Sands revenue in the same period last year was $1.59 billion.
- Sands China, the subsidiary that runs the company's casinos in Macau, doubled its net income to $267.4 million, compared with $133.6 million during the same period last year.
- "The growth of our higher-margin mass table and slot businesses, together with the contribution from the important non-gaming (hotel, retail and convention) components of our integrated resort business model, continue to drive significant margin improvement at Sands China," the company said in a statement.
- "Among the destination operators, we believe the valuation for Las Vegas Sands is most compelling considering the growth potential in Singapore, relatively low near-term expectations and its projects already under construction in Macau.," Brean Murray analyst Ryan Worst wrote in a note. "We view Las Vegas Sands as the most attractive growth story in the industry, as its $4.1 billion development of Sites 5 and 6 should drive growth in 2012 and 2013."