Do You Need Another Reason to Bet on Las Vegas Sands? Here Are Two

If the incredible revenue growth that Las Vegas Sands posted in its first-quarter earnings report the other week wasn't enough, here are two more points that should tip the scale toward bullishness on Las Vegas Sands.

May 13, 2014 at 4:46PM

Adelson Via Bloomberg
Sands CEO Sheldon Adelson is leading the company across Asia, to the benefit of its shareholders. Photo: Bloomberg

Las Vegas Sands (NYSE:LVS)

Lvs Resorts

The revenue drivers for each of these casinos over the last few years have been their Asian operations. However, for MGM and Wynn, those Asian revenues were restricted to those from Macau. As for Las Vegas Sands, Macau's massive revenues combined with those from the company's operations in Singapore. Not only does Las Vegas Sands have a much bigger bet on Asian operations than MGM and Wynn do at 88%, 75%, and 37% of global revenue, respectively, but the company is more diversified in Asia because its revenues come from different countries.

Two more reasons why investors should be bullish on Las Vegas Sands, other than its amazing quarter, are the company's continually growing operations in Singapore and its prospects in Japan.

Singapore gets sweeter
When Las Vegas Sands first attempted to bid for a casino in Singapore, it wasn't an easy task. The Singaporean government made sure that any casino that received one of the two bids to operate in the country would do so under strict rules and the casino had to prove that it added value to the country. Wynn Resorts CEO Stephen Wynn criticized the Singaporean government for micromanaging his bid to the point of making it unprofitable, and thus he and his company exited the race. Las Vegas Sands held strong and offered the government an integrated resort that would wow tourists with much more than just gaming. It worked and the Singaporean government rewarded the company with a 30-year contract to operate a casino, as well as the assurance that the government would not allow additional casinos other than these two into the country for at least 10 years.

Though the company's Singapore operations have had less-than-optimal quarters in the past, overall the casino there is doing very well for Las Vegas Sands and appears to be getting better. Marina Bay Sands, the company's Singaporean integrated resort, posted a net first-quarter profit of $435.2 million, up 9.7% year-over-year, helped in large part by non-gaming revenue. While it was not as strong as the growth the company reported for Macau during the quarter, the company is driving total profits higher through the combination of both revenues from Macau and Singaporean revenues.

Marinabaysands Evening
Marina Bay Sands: this magnificent resort has become an icon of Singapore. Photo: Las Vegas Sands

Now, the company is planning to add on even more to the already expansive resort by increasing the number of hotel rooms the resort offers with an extra 1,500 rooms added to a resort that already has 2,563. To do so, the company will need permission. CEO Adelson said on the company's recent earnings call that "Singapore, they don't work as fast as other cities. They have a lot of different ministries and agencies participate in growth." However, this shouldn't be an issue, as he also mentioned that the government has sought to help the casino maintain its appeal to keep Singapore's competitive advantage throughout the region. 

Tokyo Bid Win

Japan's successful bid for the 2020 Olympics will require some extra funding, making this an even more enticing time for allowing casinos. Photo: Japan Times

Getting ready for Japan
Japan currently bans casinos, but that will most likely change when the Japanese government votes early this summer on legislation that will allow casinos to operate in the country. Because both parties in the government are happy that the casino revenues could fund part of the cost of the coming 2020 summer Olympic games in Tokyo, most analysts believe the measure will pass without much hassle. Most likely, four bids will be awarded in Tokyo and Osaka. Analysts estimate that Japan could become the second-largest gambling market in the world if it opens up to gaming companies.


Speaking about how Las Vegas Sands' Singaporean model could work well in other countries, CEO Adelson said that "MBS' proven success in delivering the economic benefits of our convention-based integrated resort (IR) business model is allowing it to serve as the most important reference site for merchant jurisdictions that are considering IR development." Sands was able to win over the government in Singapore in 2006, and it has a strong shot at winning again in Japan.

Foolish Takeaway: Do you really need any more reason to be bullish on Las Vegas Sands?
If incredible overall revenue and profit growth, as well as plans for expansion in Macau, weren't enough to sway investors' opinions about Las Vegas Sands, these two extras should help. With increasing revenue from expanding operations in Singapore, as well as what will hopefully be the growth story of Japanese gaming, Las Vegas Sands' profits over the coming years are set to continue soaring. Now may be the time to get bullish on Las Vegas Sands' future prospects and take a position in this industry-leading company.

Sands is crushing it in the gaming industry -- But this company is about to crush it in the tech industry
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Bradley Seth McNew owns shares of Las Vegas Sands.. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers