Is Las Vegas Sands Falling Behind in Singapore?

Las Vegas Sands (NYSE: LVS  ) has been on a tear for more than two years operationally and on the stock market, partly because of an extremely profitable casino in Singapore. In just the last quarter alone, Marina Bay Sands generated $284.5 million in property EBITDA and a 49% EBITDA margin.

But Marina Bay Sands isn't the only casino in Singapore, and I was shocked to see that Las Vegas Sands' casino is actually performing worse than Genting's Resorts World at Sentosa. Genting's Singapore resort generated $435.1 million in EBITDA during the first quarter, far more than what Sands reported, even if you adjust for the latter's bad luck (which would have brought EBITDA to $311 million).

The rival's revenue growth was even more impressive. Marina Bay Sands revenue grew just 4.4% sequentially in the first quarter while Resorts World Sentosa grew nearly 18% from the fourth quarter. And that should continue to improve once the company opens its Universal Studios Singapore park in two weeks.

The comparison should be taken with a grain of salt, but the numbers are very interesting. Marina Bay Sands is a convention-driven resort in the heart of downtown Singapore, while Resorts World is like Disney World with gambling.

The envy of the room
Of course, competitors would love to have a casino like Marina Bay Sands in their portfolios. MGM Resorts (NYSE: MGM  ) spent more money to build CityCenter than either Singapore development cost and will take a year to generate the EBITDA both generated in just one quarter.

Melco Crown (Nasdaq: MPEL  ) and Wynn Resorts (Nasdaq: WYNN  ) are both in much better shape than MGM and are raking in money in Macau but would also love to have a piece of the Singapore market.

Las Vegas Sands has done well in Singapore, but with less than half of the market share I wonder if the company could be doing even better?

Interested in reading more about Las Vegas Sands? Click here to add it to My Watchlist to find all of our Foolish analysis on this stock.

Fool contributor Travis Hoium owns shares of Melco Crown and is short shares of MGM. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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Read/Post Comments (6) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 13, 2011, at 4:37 PM, Senescent wrote:

    Travis,

    If you adjust LVS's Q4 and Q1 revenue properly, you'd see 28% revenue growth in the quarter. Rolling chip hold was 3.11% in Q4 and 2.56%in Q1 - long term average should be 2.85%. I don't know what the hold numbers were for RWS but they should also be adjusted. I'm willing to bet that once you put the two adjusted numbers side by side there isn't much difference to be seen in the healthy growth rate of both. Meanwhile, RWs is somewhat ahead of MBS because it opened earlier and also because it is using junkets - which may or may not be declared illegal.

  • Report this Comment On May 13, 2011, at 5:35 PM, MutualFundMonday wrote:

    @Travis

    Universal Studios Singapore soft opened over 9 months and has had 2M visitors. This month is just the "Grand Opening." There will not be a material difference on gaming on this.

  • Report this Comment On May 13, 2011, at 5:54 PM, goldnotfiat wrote:

    travis - Your constant negativity on MGM is unrelenting and i guess it supports your short position - what will you say when the MGM Macau IPO is completed and the companys credit rating is upgraded tom

  • Report this Comment On May 13, 2011, at 9:00 PM, kittystone wrote:

    ****guys, nothing wrong with LVS's finace , it's the big speculators play game here. Didn't you see they make that stock down and up ( swing ) around $1 everyday? just like what they did on C . They made big money of LVS.

  • Report this Comment On May 14, 2011, at 1:23 AM, johndormer wrote:

    It's been open less than a year. Not a very good observation, but then again your an analyst.

  • Report this Comment On May 15, 2011, at 9:10 PM, TMFFlushDraw wrote:

    @goldnotflat

    No, other way around. My short position supports what I've said about MGM. I put my money where my mouth is.

    Why do you think MGM's credit will be upgraded by the Macau IPO? They aren't getting any cash out of the deal. And it isn't like we aren't expecting it.

    The company is barely making enough money to pay interest right now. That's why I'm negative.

    Travis

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