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Not one of LVS's finest. Even on a hold adjusted basis, Macau EBITDA was disappointing. Singapore estimates look like they are heading lower - the macro isn't good.


  • Pleased with quarter
  • "Includes the impact of the initiation of a "14th month" special bonus accrual for non-management employees in Macao. Absent this accrual, Adjusted Property EBITDA would have been approximately $29 million higher both in Macao and on a consolidated basis, and Adjusted Earnings per Diluted Share would have been $0.03 higher."


  • VIP experiencing a slowdown
  • 3 VIP headwinds mentioned by Adelson:  
    • Tightening liquidity conditions in Chinese economy and junket system
    • Real estate market slowdown 
    • General uncertainty and caution in economy
    • We also think disappearance of Huang Shan who owed ~$1.3 billion had an impact.
  • LVS gaming revenue mix:  44% VIP/ 56% non-VIP
  • Market gaming revenue mix:  60% VIP/ 40% non-VIP
  • World Cup 'clearly' had an impact on June GGR
  • June Macau Revenues were -20% relative to May similar to 2010
  • Continue to invest in premium direct 
    • Experienced lower VIP decline than junket volume
  • Reduced VIP capacity by 28%; increased mass table capacity by 14%
  • Impacted by low hold in premium mass segment
  • Competitors lag behind on the integrated resort model
  • Four Seasons mall:  highest grossing mall per sq ft in the world ($5,500); Bal Harbour Miami second place at $3,500
  • Confident LVS will continue to grow


  • Invest in premium mass 


  • Interest in Japan/Korea 
  • Bought back $320m of stock in Q2

Q & A

  • VIP only 17% of EBITDA 
  • Macau VIP:  back end consumer demand is soft
  • Have seen more VIP Chinese customers into Vegas
  • Macau:  Pulling back on VIP credit but not concerned from a risk perspective 
  • Have enough money for current stock repurchase program 
  • World Cup impacted mass business, especially in June; poor mass mix -  premium mass (higher mass mix %)  did fine but margins a little lower than pure mass
  • Q3 will be better
  • Premium mass demographics has some overlap with VIP demographics but ultimately, is a different audience
  • Premium mass has 38% margins
  • Want to increase more room comps
  • Singapore relationship: the bigger the hold, the lower the rolling chip volume
    • What about Q1 2012 where hold was 3.6% and volume grew 25%?
    • What about Singapore macro? It's deteriorating. 
  • Singapore:  cautious on lending credit
  • Dragons Palace:  will take 3 months to fully ramp
  • Macau competitors can't focus on mass because they don't have enough tables
  • Macau:  no margin erosion
  • Parisian: construction has stopped, pending govt approvals to be received shortly.  Planned opening date unchanged at end of 2015.
  • Smoking ban:  'VIP' definition still unclear.  All VIP rooms will be allowed smoking.  Believe public estimates 2-3% impact on revenues.
  • St. Regis:  will open in Summer 2015
  • Four Seasons condo titles:  licensing process with Macau govt
  • Board approved construction to spend $33m to put smoking facilities in
  • Four Seasons mall:  Dont' need the money from selling Four Seasons right now.  More focused on Parisian. No restrictions from government.
  • Would love to build another hotel in Singapore
  • CFO search:  no external hire