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Las Vegas Sands (LVS): 2Q11 results recap and read-through

July 27 2011

Las Vegas Sands reported very impressive all-around results in 2Q11. Solid quarter in Las Vegas was overshadowed by record numbers at Sands’ Macau and Singapore properties. In 2Q11, LVS reported total net revenues of $2.35bn (+47.1% versus $1.59bn y/y), EBITDAR (post corporate expense) of $852.4mm and adj. EPS of $0.54 (see Figure 1 in the attached PDF). This compares to Street estimate for revenues of $2.21bn, EBITDAR (post corporate expense) of $761.9mm and adj. EPS of $0.44. Total company EBITDAR margins increased 880 bps to 38.4% (versus Street estimate of 35.7%). The strong EBITDAR margin improvement can be attributed to the higher margin EBITDAR contribution from Singapore (+55.0% margin) as well as strong margin improvements at LVS’ Macau properties (+310bps combined), Las Vegas (+400bps)and Sands Bethlehem (+400bps), which benefitted from the addition of table games. We would be buyers of LVS shares on expected continued strength in Singapore and Macau in the coming quarters as well as improving Las Vegas results.

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