Takeaway: Still the best story in gaming

Singapore as advertised by the shorts but Macau strong and getting stronger. Dividend raise a plus.




  • Organic growth at existing properties: 3Q Macau market share 19.3%
  • Oct Macau Market share: >20%
  • 17% market share of RC volume for 3Q
  • Macau table productivity: win/mass/table increased 26% to $8.700 vs $6,900 (LVS is the market leader)
  • MBS: cost $105MM in EBITDA due to low hold; main customers: Singapore, Indonesia, Malaysia, HK, Taiwan, China, Japan, Korea, and Vietnam
  • SCC:  sees strong operating performance continuing in the quarters ahead as phase II ramps up; Holiday Inn, Conrad, and Sheraton are doing well.  Connecting bridge will open in December.
  • Parisian target opening: late 2015 or earlier
  • Are actively pursuing Japan, Korea and Vietnam.  Taiwan is taking more time.
  • Madrid: will only have projects that return above 20%
  • Parisan Macau: waiting for govt approval
  • Japan:  gaming legislation supposed to be submitted to the Diet in April 2013
  • Korea:  have met with local govt officials; have not negotiated tax rates; expect a 'Singaporean-type' of restriction on local play
  • Vietnam:  long process in Ho Chi Minh City 
  • Taiwan:  interested in the Mainland but process has been slow
  • Toronto:  have decided on location; needs the approval of Toronto City Council
  • South America (Brazil, Argentina), NYC (Queens):  have looked at opportunities there
  • Singapore:  VIP and mass volumes have been volatile in the last four quarters; hotel and MICE business have performed very well; there is rarely an empty room.  Retail has done well.
  • Las Vegas:  held very well; continues to be driven by Asian customers; had some group cancellations in 3Q but 2013 outlook looks stronger.
  • Sands Bethlehem:  Hotel was sold out for the last 4 days
  • Hold-adjusted EPS was 53 cents
  • Only $100mm debt due in remaining 2012 and 2013; interest at 2.9%
  • Net debt/EBITDA: 1.9x
  • Comfortable with net leverage ratio of 3-3.5x if international opportunities present itself



  • Macau SSS growth rate:  should accelerate in the future.  
  • Mass/ETG/slots:  getting more share by the quarter
  • Singapore:  flat in the VIP segment in the last 4 quarters; VIP growth is a challenge; Mass/ETG also challenging. Will be targeting $10-20K premium mass customer into MBS---believes that segment is the growth for the future
  • SCC:  January is the date for additional tables
  • S'pore RC volume:  customer demand was soft, has been in the $11-12 billion range recently. Goal is to go back to $15-16 billion range. 
  • Singapore looks like a $45-50 billion rolling market
  • VIP market in China is slowing...same deceleration in Singapore.
  • 24 new stores opening in Four Seasons, opening 43 new stores in SCC; a mall will open next to Sheraton
  • SCC:  very happy with the junkets there; mass tables have been slow due to strong performance from Venetian. Goal is $10k win/mass table/day--what Venetian did in 3Q
  • SCC margins were hurt due to lack of premium mass
  • 3Q Direct Play at Four Seasons: 16% vs 37%
  • Lot 3:  govt has said they will give more tables to people who build more non-gaming--they want 10% casino, 90% non-gaming property composition.  LVS is confident they will get 500 tables but may get 450.
  • SCC:  reallocating space for premium mass
  • Europe:  gaming tax will be relatively low
  • NYC market:  Willets Point in Queen 
  • Macau: premium mass vs regular mass margins-- 40s, not much difference between tiers
  • Singapore: premium mass vs regular mass margins--high 60s, also not much difference between tiers




  • Raised quarterly dividend by 40% to $0.35 per common share, or $1.40 per common share per year, beginning in 1Q 2013
  • Hold-adjusted EBITDA: $950.7 million
  • Consolidated adjusted property margin of 32.4% vs 38.4 in 3Q 2011
    • Due to lower hold (approximately $74 million adjusted property EBITDA impact) and increased provisions for accounts receivable (approximately $15 million in adjusted property EBITDA impact) in Singapore.
  • Sands China:  property EBITDA increased 24.3% to $485.6 million 
  •  MBS
    • Adjusted EBITDA $260.8 million; hold-adjusted EBITDA: $365.6 million
    • Rolling chip hold: 1.79%
    • Rolling chip volume dropped 30% YoY
    • Non-Rolling Chip drop decreased 5.7% to $1.13 billion
  • Las Vegas: adjusted property EBITDA of $98.2 million, an increase of 4.1% compared to the $94.3 million in 3Q 2011
    • Higher than expected table games win percentage of 28.1% for the quarter. Table games drop, which benefited from strong growth in baccarat play, increased 8.5% to a third quarter record of $581.5 million. Slot handle increased 1.7% to $498.4 million while slot hold percentage was 8.7%. Hotel ADR was flat compared to last year's quarter, although RevPAR decreased 5.6% due to a lower occupancy percentage.
  • D&A: $226.5 million
  • Net interest expense: $62.3 million
  • Unrestricted cash balances as of 3Q: $3.75 billion
  • Total debt outstanding, including the current portion, was $9.50 billion. Total principal payments for the remainder of 2012 and the full year 2013 are approximately $8.7 million and $97.5 million, respectively.
  • 3Q capex:  $327.3 million, including construction and development activities of $231.8 million in Macao, $79.8 million in Las Vegas, $10.9 million at Marina Bay Sands, and $4.8 million at Sands Bethlehem. 

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