Las Vegas Sands, the casino company that runs the Venetian and Palazzo resorts on the Strip, announced its third-quarter earnings Wednesday.
Company: Las Vegas Sands Corp. (NYSE: LVS)
Revenue: $3.53 billion, down 1 percent from the third quarter of 2013.
Net income: $671.7 million, up 7.2 percent from the third quarter last year. That figure is noticeably higher largely because of a $47.4 million legal settlement expense the company recorded last year, as well as better operating results in China this quarter.
Earnings per share: 83 cents, up 9.2 percent from the third quarter last year.
What it means: Gambling revenue in Macau, where Las Vegas Sands has a strong presence, has fallen consistently over the last several months. September’s revenue from gambling there dropped nearly 12 percent from the year before, marking the fourth straight month of declines.
Nonetheless, Sands CEO Sheldon Adelson remains optimistic. His company’s overall revenue in China dropped less than half of 1 percent from last year to $2.33 billion.
Adelson had said at an industry convention earlier this month that he thought Macau would turn around, and he made similarly hopeful comments today. In a statement, he said he was confident the Sands properties on Macau’s Cotai Strip, bolstered by the Parisian Macau set to open next year, “will meaningfully enhance the appeal of Macau to business and leisure travelers and provide an outstanding platform for growth in the years ahead.”
In Las Vegas, the company’s net revenues increased 1.5 percent, to $380.5 million, from the third quarter of 2013. Casino revenue and food and beverage revenue dropped slightly, but those were offset by stronger gains in room revenue and revenue from convention, retail and other sources.
Quote: "While the operating environment in Macau, especially in the rolling segment, proved challenging during the third quarter, I am pleased that our mass and nongaming focused strategy allowed us to report a quarter of steady revenue and cash flow and to deliver growth in operating income, net income and earnings per share. We remain focused on the consistent execution of our global growth strategy, which continues to leverage the power of our unique convention-based Integrated Resort business model. We are confident that the continued execution of this strategy will extend our position as the global leader in Integrated Resort development and operation and enable us to deliver strong growth in the future.” — Sands CEO Sheldon Adelson