Las Vegas Sands Reports Record First Quarter Results
By James Shillinglaw
April 25, 2012 9:00 PM
Las Vegas Sands Corp., which owns the Venetian and Palazzo in Las Vegas, reported record financial results for the quarter ended March 31. Much of those gains were from the company’s resorts in Macao and Singapore, but the Vegas properties also delivered record revenue, operating income, adjust property EBITDA and adjusted earnings per share for the quarter.
The company’s net revenue for the first quarter of 2012 was a record $2.76 billion, an increase of 30.8 percent compared to $2.11 billion in the first quarter of 2011. Consolidated adjusted property EBITDA in the first quarter of 2012 increased 43 percent to a record $1.07 billion, compared to $745.7 million in the year-ago quarter. Consolidated adjusted property EBITDA margin increased 330 basis points to 38.6 percent in the first quarter of 2012, compared to 35.3% in the first quarter of 2011.
In Macao, Las Vegas Sands generated significantly stronger gaming volumes across its property portfolio, while adjusted property EBITDA reached a record $456.4 million with an adjusted property EBITDA margin of 32.1 percent.
One April 11 Sands also opened the first phase of the largest integrated resort development in the company's history, the Sands Cotai Central. Located at the center of the Cotai Strip and directly across from The Venetian Macao and the Four Seasons Hotel Macao and Plaza Casino, Sands Cotai Central features amenities and attractions designed to broaden and deepen Macao's appeal as a destination for business and leisure travelers. Upon completion it will have approximately 6,400 hotel rooms, which will boost meetings, incentive, convention and exhibition business in Macao.
In Singapore, Marina Bay Sands produced a record $472.5 million of adjusted property EBITDA during the quarter and an EBITDA margin of 55.7 percent. Sands reported strong growth in VIP, mass gaming and slot volumes coupled with continued growth in visitation and non-gaming revenue streams, including hotel, food and beverage, retail and entertainment
But Sands also is bullish on its Las Vegas properties. The Venetian and Palazzo generated $115.8 million in adjusted property EBITDA during the quarter, up 77.6 percent compared to the first quarter last year. The two casino resorts delivered adjusted property EBITDA of $115.8 million for the first quarter of 2012, an increase of 77.6 percent compared to the $65.2 million generated in the first quarter of 2011. Adjusted property EBITDA margin was 30.1 percent for the quarter. Stronger group meeting and convention business during the quarter drove a 4.9 percent increase in cash hotel ADR.