Despite the fact that Macau is experiencing a multi-year decline in gambling revenue as a whole, Las Vegas Sands Corp’s new casino and resort, The Parisian, is on target for a September 13, 2016 grand opening. Visually stunning both inside and out, the new resort casino features a half-scale replication of the Eiffel Tower at its entrance. Sheldon Adelson, Sands chairman and CEO, recently revealed new details about the $2.9 billion, 3000 room resort on Macau’s Cotai Strip. During the same conference call, Adelson also revealed to investors the not-so-rosy second quarter earnings results. No doubt, those figures will strengthen Adelson’s resolve to continue his crusade against online gambling.
The earnings report shows yet another decline in Sands’ performance. Earnings were at $394.4 million or 41 cents per share, for a drop of 32.2 percent compared to 2015 second quarter results of $581.5 million or 59 cents per share. Revenue was down 9.3 percent to $2.65 billion compared to second quarter 2015 of $2.92 billion. Sands attributed the majority of the decline to its Macau businesses, which provide more than half of Sands’ cash flow. Despite the negative trend in revenue and earnings, a small ray of sunshine could be seen as June represented the first monthly year-over-year performance increase since September 2014. At least shareholders saw it that way as the share price in after-hours trading was up 4 percent.
Las Vegas Sands has quite an investment in Macau. Along with The Parisian, Sands will have four interconnected resorts with 13,000 rooms, four performance centers, an arena and two million square feet of convention space. Adelson said, “It is one of the most beautifully decorated public spaces for any hotel in the world. It is really, really magnificent and is going to be a high-demand hotel.”
Not to take away from The Parisian’s grand opening, another major casino resort grand opening will precede it by three weeks. Steve Wynn’s Wynn Palace will open on August 22, 2016. To put a happy face on that bit of news, Adelson said he thinks the opening of Wynn Palace will be beneficial to both properties.
To finish up with his conference call, Adelson highlighted a bit more company news:
— Sands will continue its dividend policy, 10.8 percent higher than a year ago, currently returning $2.88 a share per year with a quarterly 78-cents-a-share dividend payable Sept. 30.
— Plans are moving ahead for Sands’ 17,500-seat, 400,000-square-foot Las Vegas concert hall. Sands is collaborating with The Madison Square Garden Co., Azoff MSG Entertainment, Live Nation Entertainment Inc. and Oak View Group to build it. Construction is expected to commence at Sands Avenue between Koval Lane and Manhattan Street in early 2017. Grand opening is planned for late 2018 or early 2019.
— Sands’ Las Vegas properties, The Venetian and Palazzo, had a 95 percent occupancy rate for the quarter and the average daily room rate was up 3.9 percent to $240.
— Net revenue climbed 3 percent for the company’s Las Vegas properties to $356.5 million for the quarter.