Two factors produced the biggest smiles for investors in Las Vegas casino publicly traded companies as they pored over their earnings reports this quarter. Their companies either had a connection to Macau or are delivering — or are on the verge of delivering — real-money online poker.
As the quarterly earnings season winds down, it is clear that the biggest winners this time were the companies that had a presence in Macau, and the bigger the presence, the bigger the score.
Las Vegas Sands, Wynn Resorts and MGM Resorts International had good quarters, and, not surprisingly, all three are in various stages of building resorts in the only place in China where people can legally gamble.
Sands, which operates the Venetian and the Palazzo on the Strip, generated 64 percent of its record $3.24 billion revenue through its Sands China division. The company is building a 3,000-room Parisian Macau-themed resort on the Cotai Strip, the newest section of Macau. Of the three Las Vegas companies with a presence in Macau, Sands has the most properties, rooms, tables and slots.
Wynn also is building on the Cotai Strip, and Chairman Steve Wynn announced the name of the new property — the Wynn Palace — during his earnings call. With Wynn Macau and Encore generating revenue on the city’s main peninsula — a little less than usual because the company was in the midst of room renovations during the quarter — Wynn Palace, a floral-themed resort, will be the company’s first venture at Cotai.
Steve Wynn has an ambitious construction schedule, planning to open the new resort by Chinese New Year 2016.
MGM also is in the Macau market, although not as deeply as its Las Vegas counterparts. It has a 51 percent ownership stake in MGM China, resulting in earnings that weren’t as stellar as Sands’ and Wynn’s. Still, Macau revenue was at record levels for the quarter, and overall, the company’s revenue was up 6.8 percent to $2.48 billion, narrowing quarterly losses by 36.1 percent.
The company announced a $113 million dividend to MGM China investors and made a passing reference that construction was underway for MGM Cotai. All three Las Vegas casino companies operating in Macau had similar reports about their Las Vegas operations. Read more about this story at Vegas Inc.