..

Sands China Revenue up 22 Percent

Written by:
Guest
Published on:
Mar/02/2010

March 2 (Bloomberg) -- Sands China Ltd., Asia's biggest listed casino operator, said profit rose 22 percent last year as Macau visitors gambled more on card games and slot machines.

Net income increased to $213.8 million from $175.7 million a year earlier, Sands China, which has the second-biggest market share among Macau casinos, said in a statement to Hong Kong's stock exchange today. That compared with the $225 million mean estimate of four analysts surveyed by Bloomberg.

The casino operator controlled by billionaire Sheldon Adelson has gained 2.9 percent in Hong Kong trading after raising $2.5 billion in a Hong Kong initial public offering and convertible bond sale last year. In Macau, the world's biggest gambling hub, revenue from baccarat, blackjack and other games grew 9.7 percent to a record 119 billion patacas ($15 billion) last year.

"We believe Macau gaming is a compelling secular China growth story," JPMorgan Chase & Co. analysts Billy Ng, Steven Li and Joanne Cheung wrote in a note to clients today. "We prefer Sands as it has a differentiated strategy, focusing on the mass market, proven execution ability and the most aggressive expansion plans in Macau."

Sands China fell 2 percent to close at HK$10.68 in Hong Kong. after earlier rising as much as 2.75 percent. The stock has risen 12.9 percent this year compared with a 4.4 percent decline in the benchmark Hang Seng Index.

‘Cost Savings'

Sales at the casino operator, a unit of Adelson's Las Vegas Sands Corp., rose 8.1 percent to $3.3 billion. Earnings per share grew to 3.32 U.S. cents from 2.80 U.S. cents.

Sands China's adjusted earnings before interest, taxes, depreciation, amortization and rent climbed 17.9 percent to $809 million, the company said.

"Our cost savings and efficiency programs remained an important component of our operating strategy throughout 2009," Sands China said. "These initiatives will allow us to expand our adjusted Ebitdar margins in the future and will provide enhanced operating leverage in the months and years ahead."

JPMorgan Chase's analysts rated Sands China "overweight" in new coverage of the stock, and set a share-price estimate of HK$13.50.

Casino operators in Macau, the only place in China where casinos are legal, may expect moderate growth this year, with the risks to long-term growth remaining high, Standard & Poor's said in a report. The operators may tap stock markets and refinance debt this year to improve liquidity, the report said.

"Competition will continue to be intense," said Standard & Poor's credit analyst Joe Poon. "Revenues at existing casinos may decline while new resorts gain a hold in the market."

 

 

Business/Financial News

Lithuania Dabbles in Crypto-Coin as Central Banks Look for Ways to Fend off Facebook

Lithuania Dabbles in Crypto-Coin as Central Banks Look for Ways to Fend off Facebook

Lithuania is about to issue the first central bank-produced digital coin in the euro zone, part of a project to trial state-backed digital currencies and blockchain technology in everyday use.

'Sophisticated' Hacker Plunders $450,000 From Defi Protocol Balancer

'Sophisticated' Hacker Plunders $450,000 From Defi Protocol Balancer

In two separate transactions, an attacker targeted two pools containing Ethereum-based tokens with transfer fees – or so-called deflationary tokens.

Lobbyist Abramoff Charged in Cryptocurrency Fraud Case

Lobbyist Abramoff Charged in Cryptocurrency Fraud Case

Jack Abramoff, a once-powerful lobbyist who spent time in federal prison for fraud and corruption, has been charged in a San Francisco court in an investor fraud case involving cryptocurrency and lobbying disclosure, federal authorities announced Thursday.

New Zealand Seizes $90M From Russian Bitcoin Fraud Suspect

New Zealand Seizes $90M From Russian Bitcoin Fraud Suspect

New Zealand police said Monday they have seized $90 million from Alexander Vinnik, a Russian bitcoin fraud suspect who is in French custody but is also wanted in the United States.

Canadian Crypto Firm Collapsed Due to Ponzi Scheme by Late Founder, Regulator Says

Last year’s collapse of Canadian cryptocurrency trading platform Quadriga CX was due to a Ponzi scheme operated by founder Gerald Cotten, who died suddenly in December 2018, the country’s biggest securities regulator said on Thursday.

Syndicate