(Updates with CEO comment in sixth paragraph.)
Oct. 27 (Bloomberg) -- Las Vegas Sands Corp., the U.S. casino company expanding in Asia, reported third-quarter profit that beat analysts’ estimates, as growth in both Singapore and Macau continues and Las Vegas recovers.
Net income climbed to $353.6 million, or 44 cents a share, from $168 million, or 21 cents, a year earlier, the Las Vegas- based company said today in a statement. The figures reflect preferred dividend payments. Profit excluding some items was 55 cents, more than the 52-cent average of 20 estimates.
Chairman and Chief Executive Officer Sheldon Adelson, who predicted in May his company would generate more than $3 billion in cash flow this year, said last month in an interview that earnings may “substantially exceed” that forecast, given “reliability and predictability.” The board is considering paying a dividend as early as next year, he said at the time.
Las Vegas Sands rose 4.4 percent to $45.40 at the close in New York. The shares jumped as much as 4.3 percent to $47.33 in extended trading, after results were released. Hong Kong-listed unit Sands China Ltd. rose 8.1 percent to HK$23.90 in Hong Kong trading, before the announcement.
Total cash flow, measured as adjusted property earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 43 percent to $924.1 million, beating analysts’ projections of $827.6 million for the quarter.
“We see absolutely no reason -- again, no catalyst at hand -- which would change the upward trend we have been experiencing,” Adelson said today in an e-mail. “If anything, we see a variety of catalysts which could see us maintain this trend line well into the future.”
Las Vegas Sands’ Venetian and Palazzo resorts on the Las Vegas Strip reported Ebitda increased 62 percent to $94.3 million, as it sold more room nights and won more at baccarat.
Las Vegas is staging an uneven recovery from a record two- year drop in gambling and conventions. Gambling revenue on the Strip increased 5.2 percent this year through August, according to the Nevada Gaming Control Board. U.S. consumer confidence slumped in October to the lowest level since March 2009.
Cash flow at Marina Bay Sands in Singapore was a record $413.9 million in the quarter. Singapore has authorized just two casinos, which Las Vegas Sands and Malaysian rival Genting Bhd. opened in the first half of last year.
The company’s Macau cash flow jumped 16 percent to $388.3 million as convention, room and retail sales grew. Macau, the only place in China where casinos are legal, saw gambling revenue climb 46 percent in the first nine months of 2011, slowing from last year’s 58 percent annual surge.
Las Vegas Sands, through its Hong Kong-listed unit Sands China, is developing casino resorts in Macau to add to its existing properties, the Venetian, Four Seasons and Sands.
The territory, about 40 miles west of Hong Kong, surpassed the Las Vegas Strip as the world’s biggest casino revenue hub in 2006.
(Visit LIVE <GO> to hear Las Vegas Sands executives discuss earnings starting at 4:30 p.m. New York time.)
--Editors: Niamh Ring, Stephen West
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