Fueled by results in its Macau, Singapore and Las Vegas markets, Las Vegas Sands Corp. on Tuesday posted increases in first-quarter earnings and revenue compared with a year earlier.
In a statement, the Las Vegas company said it earned $1.4 billion, or $1.84 per share, for the three months ended March 31, up from net income of $481 million, or 61 cents per share, a year earlier.
The earnings surpassed the 84-cents-per share earnings forecast of analysts polled by Yahoo Finance.
Adjusted for nonrecurring gains, earnings were $1.04 per share.
“The power of our unique convention-based Integrated Resort business model was once again on display during the quarter, with record quarterly financial results achieved in Macau, Singapore and Las Vegas,” Las Vegas Sands CEO Sheldon Adelson said in a statement. “We also continued to invest in growth initiatives in each of our markets while returning excess capital to shareholders.”
Revenue rose 16.7 percent to $3.58 billion from $3.07 billion.
Las Vegas Sands’ total consolidated property earnings before interest, taxes, depreciation and amortization rose 30.7 percent to $1.5 billion.
Adjusted EBITDA rose 49 at the Marina Bay Sands in Singapore to $541 million, rose 26 percent in Macau to $789 million; and rose 15.6 percent to $141 million in Las Vegas.
Also during the quarter, Las Vegas Sands bought back $75 million of common stock at a weighted average price of $71.54.
The results came days after company Adelson signed a new contract that more than doubled his pay, for 2017 to $26.1 million. Bloomberg News cited a Securities and Exchange Commission filing that disclosed the new deal gave the 84-year-old Adelson $5 million in salary and a $12.5 million cash bonus for 2017. Adelson also received $4.21 million in equity awards and $4.38 million in taxable perks, mostly for his personal security detail. Adelson’s 2016 pay totaled $12.7 million, Bloomberg News reported.
Bloomberg further reported, based on data it complied, that Las Vegas Sands paid more than $1 billion in dividends on shares held by Adelson, his wife, Miriam, and trusts on behalf of other family members. Collectively, Bloomberg News reported, the Adelson family owns more than half of the company’s stock.
In 2017, Adelson signed a new employment deal that lasts through 2021, boosted his salary five-fold to $5 million and increased his bonus potential by 50 percent to $12.5 million.
Observers forecast all week that Macau would continue to pay off big for Las Vegas Sands, operated by CEO Sheldon Adelson.
Morgan Stanley analyst Thomas Allen told the financial newspaper Barron’s that Las Vegas Sands’ mass-market share dwarfs its rivals’ share in Macau and that the casino company stood to capitalize on the VIP market there this year. Allen rated Las Vegas Sands “overweight.”
Furthermore, The Motley Fool noted that Marina Bay Sands cost $5.5 billion to build in 2009 and generated $1.76 billion in 2017; Venetian Macau cost $2.4 billion in 2007 and generated $1.13 billion last year.
“Any gaming company would take those returns,” The Motley Fool’s Travis Holum wrote.
Contrasting markets, Holum noted that Las Vegas Sands’ Las Vegas hotel-casinos, The Venetian and Palazzo, collectively cost $3.7 billion to build and generated $391 million in property earnings before interest, taxes depreciation and amortization in 2017.
Before the results were announced, Zacks speculated that higher non-gaming business margins would boost company earnings.
“Notably, the company’s consistent efforts to boost tourism and traffic in Macao are yielding results,” Zacks wrote in an earnings forecast. “Additionally, its portfolio therein is experiencing strong visitation of late. Focus on diversification and growth in the mass and nongaming market also bode well for Las Vegas Sands’ and should aid margins.”
Las Vegas Sands shares rose 21 cents, or 0.28 percent, Wednesday to close at $74 on the New York Stock Exchange. The shares are up 7 percent for calendar year 2018.
