Las Vegas Sands Corp. (NYSE:LVS) is one of the world’s leading global developers of destination properties with a focus on gaming, entertainment, convention and exhibition facilities. With properties spread out across the United States and Asia, Las Vegas Sands Corp. (NYSE:LVS) holds significant advantages that their competitors only dream of.
Macau is the world’s biggest gambling market, not Las Vegas
In gambling lingo a ‘whale’ is an individual that will gamble a minimum of $150,000 per hand. Casino operators in Macau have reported a pick-up in the number of Chinese whales since the conclusion of the Chinese New Year in February, giving clear indications that casino operators like Las Vegas Sands Corp. (NYSE:LVS) will have a great year in Macau, the world’s biggest gambling market.
Being one of the first firms to open a casino in Macau, and expanding to four properties recently, has helped Las Vegas Sands Corp. (NYSE:LVS)dominate the region. Wynn Resorts, Limited (NASDAQ:WYNN), one of its closest competitors, only reported a “modest” gain of 4.4% during their quarterly reports, while Las Vegas Sands Corp. (NYSE:LVS) reported a 14.8% increase in net income. Meanwhile, Caesars Entertainment Corp (NASDAQ:CZR) seemed to have missed the boat on the Macau growth story (they have no properties in the region), and thus reported quarterly losses of $1.74 a share, worse than the consensus estimate of $1.58 loss per share.
No drama at Las Vegas Sands
The company is considering a large bond offering to facilitate a return of capital to shareholders, based on comments that were made during the company’s conference call. Billionaire CEO Sheldon Adelson was quoted as saying “”We will also consider, seriously consider, other avenues to return capital to shareholders in the future including special dividends and the implementation of a stock repurchase program.” Keep in mind, Las Vegas Sands Corp. (NYSE:LVS) offered a special $2.75 dividend at the end of 2012, in addition to upping their regular quarterly dividends by a quarter per share.
Meanwhile, Steve Wynn, the largest shareholder and CEO of Wynn Resorts, Limited (NASDAQ:WYNN), is likely facing a legal battle over his ex wife’s shares, which he controls. If his ex wife prevails in a court fight to force Mr Wynn to sell her 9.6% stake, it can trigger events that can threaten not only his personal fortune, but the entire company.