Las Vegas Sands Turns in Record 2006
Macau is continuing to be magic for the Las Vegas Sands Corporation. The company that successfully brought a touch of Italy with its massive Venetian casino complex to Las Vegas and has expanded in Asia with casinos in Macau and a contract to build a resort in Singapore; is turning in record profits.
According to financial results just released, the company’s revenues climbed an astounding 28.5 percent in 2006 to $2.24 billion while consolidated full-year and fourth-quarter adjusted property EBITDAR was $831.5 million and $244.3 million, respectively.
The Sands Macau alone generated full-year and fourth-quarter adjusted property EBITDAR of $458.0 million and $110.2 million, respectively, while the Las Venetian generated full-year and fourth-quarter adjusted property EBITDAR of $373.5 million and $134.1 million. In the fourth quarter consolidated operating income was $574.1 million for the full-year 2006 and $166.3 million for the fourth quarter of 2006.
“Two thousand and six was another outstanding year of execution for our company," said William P. Weidner, President and COO. "We delivered record operating results at both our Las Vegas and Macao properties, and made strong progress in the execution of our Cotai Strip development plans as we lead the historic effort to create Asia's Las Vegas. In addition, to complement our developments on the Cotai Strip, we advanced our plans to develop a non-gaming leisure resort and convention destination on Hengqin Island, in the People's Republic of China. In Las Vegas, we continued the development of The Palazzo and our ongoing initiatives at The Venetian designed to increase that property's appeal to important high-end Asian gaming customers. Finally, we won the right to expand our successful business model to additional jurisdictions both domestically and internationally. We have now initiated the development process for properties in those two new jurisdictions, The Sands Bethworks in Bethlehem, Pennsylvania and The Marina Bay Sands in Singapore."
According to Laycob, a portfolio manager for Marsico Capital in Denver which owns 6.6 percent of Las Vegas Sands shares, this is a great time to own stock in the company. “It's a pretty exciting time in the gaming industry and they have a lot of terrific developments ahead of them,'' Jordon told Bloomberg News. "The Cotai Strip has to work and we've made a large bet that the great management team at Sands will be able to execute.''
In Macau, The Sands casino is ramping up the profits and during the fourth quarter in -- despite the addition of incremental capacity in the marketplace -- captured over 19% of the table game market in the region. During December alone, the company’s market share increased to more than 21% of the market.
Soon the company will debut The Venetian Macau this summer, which will be the largest gaming facility as measured by number of table games, in the world. The company is also building on six other sites on the Cotai Strip, the center of Macau gaming.
"Instead of competition hurting us, it actually helped because new quality product coming into the market place is going to expand the market significantly,'' said Chairman of the Board Sheldon Adelson during an analyst conference call. "That bodes very well for the projections for our new properties.''
Company wide table games drop increased to $384.9 million in the fourth quarter of 2006 versus $320.4 million during the fourth quarter of 2005. Slot machine handle (volume) increased to $562.6 million in the fourth quarter of 2006 versus $523.0 million during the fourth quarter of 2005. Casino revenues increased 46.5% to $154.0 million in the fourth quarter of 2006 compared to $105.1 million a year ago. Table games win percentage (calculated before discounts) was 36.9% in the 2006 quarter compared to 26.4% in the fourth quarter of last year.
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