Las Vegas Sands Corp. (NYSE:LVS) Q3 2018 Earnings Conference Call Transcript

Oct 24, 2018 • 04:30 pm ET

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Las Vegas Sands Corp. (NYSE:LVS) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Donna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Las Vegas Sands Third Quarter 2018 Earnings Conference Call. All lines have been placed on-mute to prevent any background noise.

I will now turn the call over to Mr. Daniel Briggs. Sir, you may begin.

Executive
Daniel Briggs

Thank you, operator. Joining me on the call today are Sheldon Adelson, our Chairman and CEO; Rob Goldstein, our President and COO; and Patrick Dumont, EVP and CFO.

(Forward-Looking Cautionary Statements)

In addition, we may discuss non-GAAP measures. A definition or a reconciliation of each of these measures to the most comparable GAAP financial measures is included in the press release. Please note that we have posted supplementary earnings slides on our Investor Relations website. We may refer to those slides during the Q&A portion of the call. Finally, for those who would like to participate in the question-and-answer session, we ask that you please respect our request to limit yourself to one question and one follow-up question, so we might allow everyone with an opportunity to participate. Please note that this presentation is being recorded.

With that, let me please introduce our Chairman, Sheldon Adelson.

Executive
Sheldon Adelson

Thank you, Dan. Good afternoon, everyone, and thank you for joining us today. We delivered another great quarter. Hold-normalized adjusted EBITDA reached $1.27 billion, an increase of 8% over the prior year. Our Macao operations, once again, performed exceptionally well, with hold-normalized adjusted EBITDA growing by 18% to $764 million -- sorry, $754 million.We experienced strong growth in both the VIP and mass-gaming table segments, enabling us to again outperform in the Macao market, while growing our market share of revenues. We also achieved record hotel occupancy with 96% at our Macao portfolio. All the properties at 96%.

Our hold-normalized EBITDA margin increased 150 basis points to reach 35% for the quarter. The Venetian Macao continues to be the iconic must-see destination for every segment of visited to Macao. Gaming and non-gaming revenues broke through an excess of 20%, while adjusted EBITDA was up by 30%. The strong financial performance of the Venetian contributes to our unwavering confidence in the future of Macao, which will continue to benefit from enhanced transportation infrastructure and investments in the greater Bay Area. We are steadfast in our conviction that Macao will realize its vision and evolve into Asia's greatest leisure and business tourism destination. Given our confidence in Macao's future, we have elected to meaningfully increase our planned investments in the Macao market. We will increase the breadth and scale of our offerings throughout The Londoner, Four Seasons Tower Suites, and St. Regis Tower Suites.

We will also expand our entertainment, commencing in non-gaming attraction across our Cotai Strip portfolio. These important projects will come online in phases throughout 2020 and 2021. We believe these increased investments will allow us to generate strong returns on invested capital in the days ahead, while helping to contribute to Macao's economic