Sands and Melco rejoice over earnings

Melco Crown said that it lost USD 0.06 a share in the second quarter of the year. The company also announced the resignation of Greg Hawkins, president of City of Dreams

Casino rivals Las Vegas Sands Corp. and Melco Crown Entertainment announced yesterday their results for the second quarter. Both companies rejoiced over earnings, but Sands China parent company had more reasons to smile.
The casino operator run by tycoon Sheldon Adelson said that it lost USD 4.7 million, or about USD 0.01 a share, far better than last year’s loss of USD 222.2 million, or USD 0.34 per share.
“The decrease in net loss attributable to common stockholders of USD 217.5 million reflects the increase in operating income, partially offset by increases in net income attributable to non controlling interests (primarily Sands China Ltd.), net interest expense and income tax expense principally associated with earnings from Marina Bay Sands,” the report said.
Net revenue for the quarter ended June was a record USD 1.59 billion, soaring 50.6 percent compared to USD 1.06 billion in the second quarter of 2009, according to the report released yesterday.
On an adjusted basis, Las Vegas Sands had earnings of USD 129.3 million, or USD 0.17 a share. A much better result when compared with USD 8.8 million, or USD 0.01 a share, a year earlier.
Booming business in Asia – aside Macau, Las Vegas Sands Corp. opened Marina Bay Sands in Singapore last April – helped the company shrink its second quarter net loss. Overall, Macau’s gross gambling revenue in May jumped nearly 95 percent from a year earlier to hit a record high of more than USD 2.12 billion.
Sands China, a majority-owned subsidiary of the company which owns and operates the Venetian Macau, Sands Macau and Four Seasons Hotel and Plaza Casino, saw revenues increase 40.7 percent to USD 1.04 billion in the second quarter, compared to USD 738.9 million in the same period of 2009.
“In Macau, we delivered an all-time quarterly record of USD 307.0 million of adjusted property EBITDA, with each of our properties delivering substantial revenue and adjusted property EBITDA growth,” Adelson said.
Still in Asia, “the strong revenue growth, increases in operational efficiency and robust operating margins at Marina Bay Sands in Singapore all contributed to substantial margin expansion and a record financial performance overall,” he added.
The report shows better-than-expected quarterly results, since analysts expected earnings of USD 0.09 a share. Just last week, the company fired Steve Jacobs, Sands China top-official, but appointed Edward Tracy and David Sisk as chief operating officer and chief casino officer respectively, on Tuesday, ahead of releasing the earnings report yesterday.
Meanwhile, Las Vegas Sands is apparently sounding its existing lenders of a USD 5 billion credit facility on a potential amendment and extension to the financing, banking sources told Thomson Reuters LPC.

Melco’s revenue up 166 percent


Later on the day, Melco Crown Entertainment announced net revenue of USD 573.6 million for the second quarter of 2010, an increase of approximately 166 percent from USD 215.8 million for the same period ended June 30, 2009.
Adjusted EBITDA was USD 73.4 million between April and June, as compared with an Adjusted EBITDA loss of USD 23.8 million in the second quarter of 2009. The year-on-year improvements in net revenue and Adjusted EBITDA resulted primarily from the opening of City of Dreams in June 2009, providing only a limited contribution to the prior year comparable.
However, the company announced that it lost USD 30.1 million, or about USD 0.06 a share, between April and June, far better when compared with a net loss of USD 144.0 million, or a loss of USD 0.30 per share, in the second quarter of 2009.
The reduction in the net loss, the company said, “resulted from a significant year-on-year improvement in the operating performance of Altira Macau and from having a full quarter of earnings contribution from City of Dreams,” partially offset by increased depreciation and amortisation expenses and lower capitalised interest expenses following the opening of the flagship casino resort.
“Good progress has been made over the past quarter at City of Dreams, as we continue to derive benefits from the growth in our patron database and as our various brand building initiatives build momentum,” Lawrence Ho, co-chairman and chief executive officer of Melco Crown Entertainment commented.
He continued: “We delivered a 9 percent sequential quarterly increase in mass market table games revenue in the second quarter of 2010. We are seeing further modest improvement in our mass market business in the third quarter and target a more marked step-up in mass market gaming volumes in the fourth quarter on completion of the final planned phase of amenities at City of Dreams, the highlight of which will be the opening of The House of Dancing Water on September 17, 2010.”
Tomorrow (Thursday in the US), it will be Wynn Resorts who will hit the spotlight: analysts predict earnings of USD 0.42 a share.