One of the most powerful gambling companies in the world just released its quarterly financial results and things are looking good. Las Vegas Sands revenue has increased substantially in the last three months. It’s a great sign for this company, which is investing heavily in both Las Vegas and Macau.
Today, we’re looking at exactly how much this company earned during this year’s second quarter. We’ll also look at some of the major projects that the Sands is investing in. There’s a lot of information to unpack here, so let’s get into it!
Sands’ Revenue Figures in Q2 of 2019 Look Great
Las Vegas Sands is well-known as one of the biggest and most profitable gambling companies in the world. It operates many casinos throughout the United States, including two on the Las Vegas Strip. Not long ago, this company also opened a massive casino resort in Singapore.
This company is not averse to taking risks. Some analysts felt the numerous investments that this company was working on could result in revenue loss. These analysts were wrong. Las Vegas Sands revenue is boosting significantly this year.
Revenue increased by 15.9% to $466 million last quarter. The company recorded a net income of $1.108 billion with a stock sale price of $1.24. During the same quarter last year, Sands stock prices were selling at 70 cents a share.
Rob Goldstein, Chief Operating Officer of Las Vegas Sands, claims this is likely the best quarter in company history. He maintains that the company is profiting massively from both its casino and hotel operations.
“Our future in Las Vegas has become less and less dependent on the super high end,” he said in a recent conference call. “You can make a lot of money here if you focus on the hospitality piece and you have the right gaming mix and you’re running your floor properly and watch your costs.”
Las Vegas Sands Continues to Make Investments
This company has gained a fantastic reputation for making high risk-high reward investments. Back in June, we talked a little bit about Las Vegas Sands’ new project in Macau. On the surface, it seemed like a huge gamble considering revenue in Macau has been dropping for the majority of 2019.
In case you’re unaware, Las Vegas Sands is currently investing more than $1.3 billion to renovate, expand, and rebrand the Sands Cotai Central complex in Macau. This casino-resort will be renamed the Londoner. This isn’t the only Macau venue that the Sands is investing in.
This company is also putting $450 million towards the expansion of the Four Seasons Tower in Macau. The new hotel will feature 290 brand new luxury suites and is expected to be completed by 2020. There’s also an additional $450 million being invested to add more suites to the Londoner Tower Suites in Macau.
Las Vegas Sands is also benefiting from some casino sales. The company earned a $556 million gain from the sale of the Sands Bethlehem in Pennsylvania earlier this year.
Things are definitely looking good for this company. The completion of Macau investments will surely help bring this company significantly more revenue over the next few years.
Las Vegas Revenue Continues to Decline
It’s no secret that Las Vegas’ revenue isn’t coming in like it used to. Gambling analysts have a number of theories as to why. Some feel it’s due to a rise in online gambling. There are now a huge number of amazing online casinos in Nevada, most of which offer all the same games you can find inside casinos.
There’s also the issue of competition. States like New Jersey and Pennsylvania are both working to expand their casino gambling operations. In recent months, Atlantic City in NJ has grown to become one of the biggest gambling hubs in the United States. Casino and sports betting revenue have climbed here for more than a year.
Many gamblers on the East Coast are now skipping the trip to Las Vegas and choosing to play in Atlantic City. This past April, gambling revenue in Las Vegas dropped by 6% year-on-year. This trend does not appear to be slowing down.
This may be a key reason why Las Vegas Sands is investing so heavily in Macau. Of course, Macau is having some revenue issues of itself, yet things have improved in the past two months.
Make sure to stay tuned for more updates to Las Vegas Sands investments. This company is posting solid revenue figures. Hopefully, this continues.