out look

The future of Las Vegas Sands is halfway around the globe, on land at the corner of the strip, and on a section of reclaimed land in southern China. The owner of Venetian, however, said Thursday that the company was not ignoring it today. Las Vegas Sands executives reported first-quarter results for the three months ended March 31, saying the company is building a foundation to tap into that future. "While we continue to deliver outstanding financial and operational results, the opportunities ahead are significant and far-reaching," said Las Vegas Sands President Bill Weidner. "Our proven capabilities in the development and operation of integrated destination resorts enable us to build and execute a strong global growth opportunity pipeline." In 2007, Las Vegas Sands will open a $1.8 billion Palacho next to Venice, which will give the company two resorts that will include 7,000 hotel rooms on the strip. It will also open a $3 billion Venetian Macao next year, anchoring a developing Kotai strip next to Macao, where the company operates Sands Macao. First-quarter results in Las Vegas' Venetian and China's Sands Macau helped boost the company's profits. Net income for Las Vegas Sands was $121.8 million, or 34 cents, per share for the quarter ended March 31, compared with $7.1 million, or 2 cents, per share a year ago. The 2005 figure was affected by significant losses from early retirement of debt. Analysts polled by Thomson First Call had forecast that Las Vegas Sands would post earnings of 34 cents per share for the quarter. Revenue rose 31.4% from $438.0 million to $530.4 million. Cash flow, defined as earnings before interest, taxes, depreciation and amortization, was $187.9 million, up 23.9% from $151.6 million a year ago. Las Vegas Sands said casino revenue was $97.1 million based on $363.5 million bet on table games at The Venetian and $529.5 million bet on slot machines. HOTEL-Casino Revenues $43.3 Million Food and Beverage; Convention, Retail and Other Operating Revenue $34.2 Million The company said Venetian room occupancy was 99.9% during the quarter, with an average daily room rate of $249. A year ago, Venice averaged 97.8% with an average daily room rate of $243. Weidner said Trip casinos have benefited from increased business due to improvements in new showrooms, Tao restaurants and properties such as nightclubs and poker rooms. "We are seeing the benefits of our targeted capital investment in Venice," Weidner said. "The recent addition of 450,000 square feet of carpeted conference space continues to fuel the growth in group business and related food and beverage revenues." Las Vegas Sands continued construction on Palacho, a 3,000-room hotel casino being built next to Venice. The new resort is expected to open in the third quarter of 2007. "We believe this property will provide a great platform for Las Vegas' growth for years to come," Weidner said. Las Vegas Sands is also seeking Clark County's approval for a 1.1 million-square-foot convention center expansion that can open until spring 2008. "I think this allows us to book more large groups," Weidner said. In China, Sands Macau's casino revenue was $278.2 million, up 62.7% from $171 million in the same quarter a year ago. Weidner said competition has increased in Macau, but Sands has been able to overcome increased casino offerings over the past year by increasing daily multipliers. "Real revenue growth in Macau reflects strong market demand and capacity growth in Sands," Weidner said. "We continue to make progress in Macau at all levels. We are particularly pleased with the continued strength of our public market business." The company expects to complete its expansion into Sands Macau in August, growing the casino to 700 table games and 1,200 slot machines. Weidner, who was responsible for much of the Las Vegas Sands conference call with Wall Street analysts, said he believes the company has made an excellent bid to obtain a potentially profitable gaming license in Singapore. The company hopes the government will accept an offer to build $3.6 billion Marina Bay Sands, an integrated resort with 2,500 hotel rooms, 1.2 million square feet of conference space and 1 million square feet of retail. Las Vegas Sands reported earnings after trading on the New York Stock Exchange. Company shares rose 72 cents, or 1.1%, to close at $66.32.