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LAS
VEGAS -- The
future of Las Vegas Sands Corp. is coming out of the ground
on the corner of the Strip and halfway around the world
on a parcel of reclaimed land in southern China.
But
the owner of The Venetian said Thursday the company is
not ignoring today.
In
reporting its first-quarter earnings for the three-month
period that ended March 31, Las Vegas Sands executives
said the company is building the groundwork to capitalize
on that future.
"While
we continue to deliver exceptional financial and operating
results, the opportunities that lie ahead are significant
and broad-based," Las Vegas Sands President Bill
Weidner said. "Our proven capabilities in the development
and operation of integrated destination resorts position
us to build and execute on a robust pipeline of growth
opportunities worldwide."
In
2007, Las Vegas Sands will open the $1.8 billion Palazzo
next to The Venetian, giving the company two resorts encompassing
7,000 hotel rooms on the Strip.
Also
next year, the company will open the $3 billion Venetian
Macau, which will anchor the developing Cotai Strip next
to Macau, where the company operates the Sands Macau.
First-quarter
results at the company's The Venetian in Las Vegas and
the Sands Macau in China helped boost the company's profits.
Las
Vegas Sands' net income was $121.8 million, or 34 cents
a share, in the quarter ended March 31, up from $7.1 million
or 2 cents a share a year ago. The 2005 figure was affected
by a significant loss due to the early retirement of debt.
Analysts
polled by Thomson First Call predicted Las Vegas Sands
would earn 34 cents a share in the quarter.
Revenues
rose 31.4 percent to $530.4 million from $403.8 million.
Cash
flow, defined as earnings before interest, taxes, depreciation
and amortization, was $187.9 million in the quarter, an
23.9 percent increase from $151.6 million a year ago.
At
The Venetian, Las Vegas Sands said casino revenues were
$97.1 million based on $363.5 million wagered on table
games and $529.5 million gambled on slot machines.
The
hotel-casino had food and beverage revenues of $43.3 million.
Convention, retail and other operating revenues were $34.2
million
The
company said The Venetian's occupancy during the quarter
was 99.9 percent with an average daily room rate of $249.
A year ago, The Venetian averaged 97.8 percent and an
average daily room rate of $243.
Weidner
said the Strip casino has benefited from increased business
driven by enhancements to the property, such as a new
showroom, the Tao restaurant and nightclub, and a poker
room.
"We
are seeing the benefits of our targeted capital investments
at The Venetian," Weidner said. "The recent
addition of 450,000 square feet of carpeted meeting space
continues to fuel increases in group business and related
food and beverage revenues."
Las
Vegas Sands continued construction on the Palazzo, a 3,000
room hotel-casino being built next to The Venetian. The
new resort is expected to open the third quarter of 2007.
"We
believe this property will provide an excellent platform
for growth in Las Vegas for years to come," Weidner
said.
Las
Vegas Sands is also seeking approval from Clark County
to build a 1.1 million-square-foot expansion to its convention
center, which could be open by the spring of 2008.
"We
think this allow us to book more large groups," Weidner
said.
In
China, casino revenues at the Sands Macau were $278.2
million, a 62.7 percent increase compared with $171 million
during the same quarter a year ago.
Weidner
said competition has increased in Macau, but the Sands
has been able to weather the increased casino offerings
by growing its win per unit per day totals in the past
year.
"The
substantial increases in revenues in Macau reflect robust
market demand and capacity increases at The Sands,"
Weidner said. "We are continuing to make progress
in Macau at all levels. We are particularly pleased with
the continued strength of our mass market business."
The
company expects to complete an expansion to Sands Macau
in August, growing the casino to 700 table games and 1,200
slot machines.
Weidner,
who spoke for a vast portion of the Las Vegas Sands conference
call with Wall Street analysts, said the company believes
it has put out the superior bid in its quest to gain a
potentially lucrative gaming license in Singapore.
The
company hopes government accepts its offer to build the
$3.6 billion Marina Bay Sands, an integrated resort with
2,500 hotel rooms, 1.2 million square feet of meeting
space and 1 million square feet of retail.
Las
Vegas Sands reported earnings after trading closed on
the New York Stock Exchange. Company shares closed at
$66.32, up 72 cents or 1.1 percent.
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