Yesterday wasn’t a bad day to be Las Vegas Sands, which reported a 19% increase in net revenues. Sands Cotai Central (up 61%) led the parade, which also prominently showcased Venetian Macao (+36%) and Venelazzo (up 25%, driven by a record amount of table game drop). Sands’ Macanese revenue growth (28%) outpaced that of the sector as a whole (24%). Luck frowned upon Marina Bay Sands, down 8%, and Four Seasons Macao & Plaza Casino (-20%). You’d have to be a stock analyst not to like those numbers and, indeed, Wall Street was tossing around terms like “soft” today, with Deutsche Bank‘s Carlo Santarelli blaming the Marina Bay disappointment on “another bout of really poor hold.”
Even so, that was a Pollyanna forecast compared to this gloom-and-scenario for the Macao market, which predicts a massive evacuation of capital from China. So big are Sands’ revenues that they exceed Atlantic City and Nevada combined. (Yes, you read that right.) Profit alone was $577.5 million. Analysts had expected more, hence their somewhat glum reports this morning. “The whole idea for Cotai [Strip] was ours, mine,” added Sheldon Adelson in a typical bout of modesty. It’s nice to know that success hasn’t changed him.
Praise to Caesars Entertainment for reaching terms in its Las Vegas workforce on a five-year contract. The news is somewhat vague with reference to the terms but, overall, it looks fairly “george.” The Quad is excluded from the wage and benefit hikes, its predecessor — Imperial Palace — never having been a unionized property. So all Caesars rank-and-file workers are equal … but some are more equal than others. In that vein, the union conceded to lower wages for new hires in restaurants. In return, Caesars is kicking in more workers’ comp money for union members. So far, only Caesars and MGM have reached terms with the Culinary. Talks drag on elsewhere.
Caesars is also reaping kudos for its hiring efforts at Horseshoe Baltimore, which includes making the rounds of the city to stir up interest, and providing advance training. Regardless of a recent increase in Maryland’s minimum wage, “We’re committed to hiring 1,700 people,” said Horseshoe senior veep Chad Barnhill. It’s even providing manpower support to the mayor’s office to deal with employment-awareness issues. Horseshoe will also pay the city at least $11 million in Year One to reduce residential property taxes. Praise be!
Construction is proceeding at a furious clip and the property should be ready later this year. “Y’all are on some kind of hyper speed. I’ve never seen anything like it. You’re waiting at the light and a new floor goes up,” quipped Mayor Stephanie Rawlings-Blake.
