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Original Source: FD (FAIR DISCLOSURE) WIRE
. Bill Weidner, Las Vegas Sands Corp., President, COO . Larry Klatzkin, Jefferies & Co., Analyst . Brad Stone, Las Vegas Sands Corp., EVP
. Harry Curtis, JPMorgan, Analyst . Sheldon G. Adelson, Las Vegas Sands Corp., Chairman, CEO . Celeste Brown, Morgan Stanley, Analyst
. Joseph Greff, Bear Stearns, Analyst . Steve Kent, Goldman Sachs, Analyst . Rob Goldstein, Las Vegas Sands Corp., SVP . Bill Lerner, Deutsche Bank, Analyst
LVS is preparing to open the Palazzo with just seven weeks. On the Macao peninsula, will continue to reposition the Sands and capture more operating efficiencies. Remains confident that the execution of these plans will lead to superior returns for shareholders.
S1. 3Q07 Review (B.W.) 1. Highlights: 1. The property is firing on all cylinders as Co. prepares to open the Palazzo with just seven weeks. 1. Gaining volumes set 3Q records of hotel ADR and occupancy statistics were record setting across the board. 2. Entertainment offerings continued to mature. 3. Upgrading and re-merchandising of property have been increasingly successful. 4. Has much momentum as it prepares for the Palazzo opening on 12/20/07.
2. Sands Macao: 1. YonY increases in VIP gaming revenues were normalized for hold more than made up for the weaker mass-market revenues as mass customers shared more of their gaming time with new entrants to the marketplace. 2. Satisfied with the resiliency of the Sands as its VIP business remains robust before and since the Venetian opening. 3. Mass settled in at approx. $800m. 1. That drop represents the largest portion of current mass market business for any single property at the marketplace and more than twice the amount of any of Co.'s nearest competitors.
4. Opened the 238 suite hotel tower at the Sands on 09/28/07.
1. In Oct. saw significant increases in high-end mass table drop as a direct result of the addition of those rooms. 5. Remains convinced that the now completed Sands product offering with amenities like 25th floor gambling club will be a formidable competitor on the Macao peninsula for years to come. 3. Venetian Macao: 1. Notable items from opening of the Venetian Macao include:
1. Nearly 4m visitors in past 65 days of operation. 2. Strong hotel operating performance with ADR north of $200. 3. Occupancy of 3,000 suite hotel growing from 77% in Sept. to over 86% in Oct. 4. RevPAR started at $161 in Sept. and expanded nicely to [$179] in Oct. 2. Outstanding retail sales figures at the Grand Canal Shoppes with more stores opening in the weeks ahead and greater visitation circulation increased traffic flow to come as Co. opened the remainder of the mall. 3. A tremendous reception for entertainment offerings including the MBA China games, the Black Eyed Peas last week-end at Beyonce and what's expected to be a sold-out performance on 11/03/07. 4. Group Meeting and Conventions: 1. Group meeting and convention business were off to outstanding starts with: 1. More than 200 group meeting set to occur in the Venetian Macao in 4Q07 alone.
2. Along with seven trade shows this year. 3. Approx. 30 trade shows booked for 2008. 2. VIP volumes have significantly exceeded expectations. 3. Non-Rolling table game drop is steadily increasing and was up over 32% in Oct. vs. Sept. 1. Transformation of the market is coming on strong and the Venetian Macao is paving the way. 5. Investments & Infrastructure: 1. Investments and infrastructure including, Co.'s soon to be launched ferry service between Hong Kong harbor, Hong Kong airport, and the new Pac-on ferry terminal at Taipa will drive increases in: 1. Customer visitation. 2. Customer satisfaction with Macao as a destination.
2. Will be making additional investments in Macao's infrastructure including: 1. Expansion of ferry services. 2. Additional buses and planes to bring new, first-time visitors to Macao. 3. This will serve to drive visitation and increase customer satisfaction and elevate the status of Macao as a leisure and
business destination. 4. Marketing and entertainment activities, sports such as soccer, basketball, and tennis and entertainment attractions like Beyonce continue to put Macao on the map as the destination for leisure and entertainment in Asia. 1. These high profile events are just the beginning of a series of activities that will position the Venetian Macao as Asia's first, true Las Vegas style multi-night stay destination resort. 6. Developments:
1. Retail progress with respect to progress on the development of the Grand Canal Shoppes and the adjoining mall at the Four
Seasons Macao has over 150 stores in food and beverages open
now. 1. Up from 130 at the grand opening on 08/28/07 representing
approx. 350,000 sq. ft. including shops and restaurants that are on the main casino floor. 2. Expects another 350,000 sq. ft. will be open before the end of the year, with the remaining space set to open in early 2008. 1. 211,000 sq. ft. shops at the Four Seasons Macao featuring prestigious fashion and luxury brands including Armani, Cartier, Dior, Fendi, Gucci, Airmaze and many others, which
will directly connect to the shops at the Venetian Macao will open in late spring 2008. 3. Avg. base minimum rents for the Grand Canal Shoppes and the shops at the Four Seasons Macao continues to exceed $135 per sq. ft. 1. Early retail sales numbers gives Co. confidence that the mall will be an extraordinary economic success and a powerful attraction for Macao. 7. Proposed Development:
1. Proposed development of trade show and convention destination
at Hengqin Island, Co.'s development team continues extensive
collaboration with the project coordinating committee and
their consultants. 1. Plans are currently being integrated into overall plan for development of Hengqin Island. 2. In Singapore, construction continues to advance at a steady pace. 1. Has now completed terms with over 100 retailers and others to hope to be tenants in approx. 800,000 sq. ft. mall at the shops at the Marina Bay Sands. 2. Net rates far in excess of rates in any other major market in Asia, reflecting the tremendous potential for Co.'s unique retail asset developing there. 3. Remains on track for an opening of Marina Bay Sands in late 2009. 4. In Bethlehem, Pennsylvania, received site plan approval from the city and are now moving forward with construction there. 8. Summary: 1. In Las Vegas, property is performing exceptionally well. 1. On 12/20/07 will preview the 3,068 suite Palazzo ramping up to full power in 1Q08 to extend successful business model here driving growth while capturing the efficiencies manifested in Co.'s master plan.
2. The Palazzo will feature even more products specifically designed to appeal to increasingly important high-end Asian gaming customer. 2. On the Macao peninsula, will continue to reposition the Sands and capture more operating efficiencies. 3. On Cotai will continue to dial in the various synergistic profit centers for the Venetian Macao. 1. The rooms, the retail, the entertainment, the convention, the trade shows, the VIP table of business, mass table business, and Slots to maximize revenues and income as Co. completes additional infrastructure and product features. …