Thursday, October 28, 2010

Las Vegas Sands beats 3rd-qtr estimates, shares rise

LOS ANGELES: Las Vegas Sands Corp, the casino operator run by billionaire Sheldon Adelson, posted a better-than-expected third-quarter profit on Wednesday, Oct 27 due to strong results at its new Singapore resort and in Macau, and the company's shares rose 8 percent.

After adjusting for one-time items, Sands earned 34 cents a share in the quarter, up from 3 cents a year ago, beating the 23 cents per share analysts, on average, had expected, according to Thomson Reuters I/B/E/S.

"They came in well ahead of estimates, but did benefit from table luck in Macau," said ITG Investment Research analyst Matthew Jacob, referring to the amount of money won from gamblers at table games. "Regardless, estimates did move up throughout the quarter and they still beat."

The company's net revenue rose 67.3 percent to $1.91 billion compared with a year earlier.

Sands said revenue at its majority-owned Sands China subsidiary rose 27.7 percent to $1.08 billion, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased 43 percent to $328.6 million.

Singapore's Marina Bay Sands generated $241.6 million in EBITDA for the quarter. The $5.7 billion casino resort began operating in April.

"This shows the strength of their key markets, which are Macau and Singapore," Jacob said. "Singapore has not been open for a full year, but does seem to be ramping up much more quickly than people had expected."

In Las Vegas, Sands' EBITDA rose to $58.3 million in the third quarter from $34.5 million a year earlier.

Sands had third-quarter net income of $268.8 million, or 21 cents a share, compared with a year-earlier net loss of $80.6 million, or 19 cents a share.

In addition to Singapore's Marina Bay Sands, Sands owns the Palazzo and Venetian resorts on the Las Vegas Strip, three casinos in Macau and a casino in Pennsylvania.

The company's shares, which closed at $41.06, rose to $44.38 after hours. - Reuters

No comments:

Post a Comment