Inside Asian Gaming

November 2012 | INSIDE ASIAN GAMING 47 Briefs continuing operations amounted to US$1.04 and IGT projected that would grow to $1.20 to $1.30 in fiscal year 2013, which would amount to growth of 15% to 25%. LVS Revenues Rise, But Profits Fall Las Vegas Sands Corp grew revenues 12.5% in the third quarter but experienced a slight decline in net income. The company, which operates casinos on the Las Vegas Strip, Macau, Singapore and Pennsylvania, said its net income for the three-month period ended 30th September was US$349.8 million, down 1.1% compared with the same quarter in 2011. Earnings per share were 42 cents, down from 44 cents a year earlier. Analysts polled by FactSet expected the company to earn 60 cents a share. LVS overall net revenues were US$2.71 billion, compared with $2.41 billion in the third quarter of 2011. More than 60% of LVS’ total revenues in the quarter came from the company’s holdings in Macau. Combined, The Venetian Macao, Sands Macao, Four Seasons Macao and the Sand Cotai Central complex reported revenues of US$1.64 billion, an increase of 36.7%. In remarks on the company’s conference call with investors and analysts, Chairman and CEO Sheldon Adelson said Macau will continue to be the company’s driving force for revenue growth. The US$4.4 billion Sands Cotai Central, which includes multiple hotels surrounding shared casino, retail, dining, entertainment and convention space, opened in the first phase in April and its second in September. “We expect the attractions and offerings of Sands Cotai Central, and in particular its vast inventory of hotel rooms and suites, to meaningfully benefit Macau and the Cotai Strip as it strengthens its position as one of the leading business and leisure destinations in the world,”Mr Adelson said. LVS will operate 28 million square feet of resort space among the company’s properties on the Cotai Strip. Susquehanna Financial Group gaming analyst Rachael Rothman said Las Vegas Sands was gaining market share in Macau, based on October’s gaming revenues for the market. “Las Vegas Sands market share of 20.5% was an improvement from the third quarter’s 19.2%,” Rothman said. “The result is encouraging and supports our thesis of continued market share gain commensurate with the ramp up of Sands Cotai Central.” In Las Vegas, the company’s revenues from The Venetian and Palazzo grew 4.9% to US$364.4 million. Room revenues at the two properties fell 7%, though their gaming revenues rose 38% in the quarter. Table game wagering, which benefited from strong growth in baccarat play, increased 8.5% to $581.5 million. Slot machine wagering increased 1.7% to $498.4 million. The company also experienced a 21% decline in revenues from the Marina Bay Sands in Singapore. The resort reported US$625.5 million in revenues, which included a 27.8% decline in gaming revenues. “Despite low hold on table games play at Marina Bay Sands in Singapore, our financial results reflect strong revenue growth and cash flow for the quarter,”Mr Adelson said. LVS said it had outstanding long term debt of US$9.5 billion as of 30th September. Bally Technologies Revenue Rises 21% Last Quarter Bally Technologies grew revenues 21% in its financial first quarter (ended 30th September) as the slot machine maker hopes to capitalize on the positive feedback it received from last month’s Global Gaming Expo (G2E). Also, Las Vegas-based Bally announced a US$150 million share repurchase plan that replaced an existing program under which the company bought back approximately $127millionofcommonstock.Ballysaid $67 million of stock was repurchased at an average price of $44.22 per share during the first quarter. “The new repurchase program allows us to continue to support our capital-deployment strategy and reflects our continued confidence in Bally’s long-term growth plan and ability to consistently generate free cash flow,” Bally Chief Financial Officer Neil Davidson said. Bally said its operating income of US$54 million, or 77 cents per share, in the quarter ended 30th September was a 43% increase compared with $37 million, or 45 cents per share, in the first quarter a year ago. Total first-quarter revenue for Bally was $235 million, compared with $195 million last year. “We expect continued growth from each of our businesses,” Bally Chief Executive Officer Richard Haddrill said. During the first quarter, Bally said the company shipped its first video lottery terminal units to the Atlantic Lottery Corp. in Canada and installed VLT games in Illinois. The company said it sold 4,608 slot machines in the quarter, 1,209 more machines than last year. The average sales price of $16,853 per machine was $200 higher than a year ago. In a separate announcement, Bally and rival slot machine maker International Game Technology announced they ended a patent litigation case. Under terms of the settlement, Bally will obtain a patent license to IGT’s bonusing portfolio under confidential terms and will dismiss its counterclaims with prejudice. Sands Cotai Central Richard Haddrill