Written by :
Published on :
Las Vegas Sands (LVS) is expected to report its Q3 2013 earnings this coming Thursday October 17 and results should be positive according to Zacks Investment Research’ Steve Reitmeister.
We expect the company to post good results in the third quarter on the back of solid growth in mass-market gaming, which had seen 33% surge year-to-date. This is far more than 8% growth in VIP gaming during the same period. The company's Singapore operations should also do well as the macroeconomic situation has been favorable this year. While Singapore's GDP has contracted 1% in the third quarter, it is up 5% on a yearly basis.
Much of the Sands success will hinge on Macau’s continued growth.
Macau has seen solid growth so far this year. The gross gaming revenues were up 20% in July, amounting to $3.7 billion, the third strongest figure this year. The revenues rose by 18% and 21% to $3.85 billion and $3.63 billion for the months of August and September respectively. The strong growth was driven by an increase in the number of Chinese visitors. However, on September 22 a severe typhoon hit close to Macau and Hong Kong, disrupting air, road and rail links in the surrounding areas and resulting in a lower influx of visitors into the casino hub. LVS is poised to benefit from the increased gaming revenues in Macau as it operates multiple properties in the area with a market share of close to 23%, only behind SJM Holdings, which commands close to 24% market share.
- Aaron Goldstein, Gambling911.com
