The results of Las Vegas Sands in the third quarter of 2014
The Las Vegas Sands Group has announced that their revenues for the third quarter of 2014 decreased by 1% to $3.47 billion.
In the meantime, profits increased by 7.2% to $671.1 million, despite gambling revenues decreasing 7.1% in Macau.
The difficulties of the VIP market in Macau
In the third quarter of 2014, the general market for Las Vegas Sands increased 14%, while the VIP market went down 21.9%.
While the casino industry in Macau is currently facing some difficulties, Sheldon Adelson, the chairman and CEO of the Las Vegas Sands group, announced that their focus on related activities other than gambling seems to have paid off, as the turnover of the company has remained fairly stable.
A similar context in Singapore
The group is faced with a similar dynamic in Singapore.
Overall revenues were down 5% and EBITDA (earnings before interest, taxes, depreciation, and amortisation) decreased by 5.9% year after year only to reach $351.7 million today.
The general market grew by 6.6% to $443.8 million, and the VIP market decreased by 38.6% to $241.2 million.
Again, it is the additional activities aside from gambling which helped to buffer some of the losses of the VIP market, and revenues went up 17.9%.
Great results in Las Vegas
On the other side of the Pacific, in Las Vegas, the company continues to perform well in a pretty tough market.
The adjusted EBITDA for the Venetian and Palazzo complexes is up 3.6% to $90.2 million for the third quarter 2014.
The ADR (average daily rate) of the hotels increased by 4.1% to $204 and RevPAR (revenue rer available room) is up 9.4% to $187.
However, revenues from table games are down, even if baccarat continued to grow by 16.3% to $632.9 million.
Revenues of slot machines increased by 12.1% to $573.1 million.
The group’s strategy
After the release of these figures, Sheldon Adelson concluded that his company will remain focused on consistent execution of their global growth strategy by leveraging the power of their business model based on integrated resorts.
They are combining a hotel-casino with an entertainment and shopping centre.
Furthermore, Adelson believes that the implementation of this strategy should allow the group to establish itself as the world leader in the industry.
It looks promising for strong growth in future years.
