Las Vegas Sands (NYSE:LVS) recently reported strong Q4 results with net revenue increasing 26% y-o-y. The consolidated full year net revenue also witnessed an increase of 37% yoy to reach $9.4 billion. The Macau and Singapore operations were the major contributors to this impressive revenue growth. LVS also reported a substantial increase of 58% in company-wide EBITDA for 2011 driven by higher margin mass table and slots businesses. LVS competes with Wynn Resorts (NASDAQ:WYNN), MGM Resorts International (NYSE:MGM), SJM (HKG:0880) and Genting Singapore.
We have adjusted our estimates for LVS higher in accordance with the 2011 numbers. The revenue from convention, retail and other division were higher than our expectation. We have updated our numbers to incorporate these changes and have revised our price estimate for Las Vegas Sands to $57, implying a premium to the current market price. 
LVS’s Jewels: Macau and Singapore
LVS has significant presence in Macau and operates through the Venetian Macao, the Sands Macao and the Four Seasons Hotel. According to LVS Chairman Sheldon Adelson, LVS’s gross gaming market share in Macau has grown from 15% in January 2011 to 19% in January 2012. [1] In April, LVS has plans to open the first phase of Sands Cotai Central that is located at a prime location on the Cotai Strip and is directly across from The Venetian Macao and the Four Seasons Hotel Macao. At completion, it is expected to have 6,400 rooms.
LVS, along with Genting Singapore, enjoys duopoly in the casino industry in Singapore. LVS’s Singapore property has reported record growth since its inception in April 2010. For 2011, it reported $2.9 billion in net revenues witnessing a 131% yoy increase and continues to be a strategic growth driver for the company.
Exploring New Opportunities
In the earnings conference call, Sheldon Adelson asserted that LVS is presently exploring opportunities specifically in Japan, Korea, Taiwan and Vietnam. We are optimistic about LVS’s expansion plans both within the U.S. and internationally. We believe under his leadership, LVS would make a well thought of strategic move in diversifying its operations further.
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Notes:- See: Las Vegas Sands’ CEO Discusses Q4 2011 Results, Seeking Alpha [↩]
