Since reporting earnings in early February, Las Vegas Sands
This island ain't so tiny
Even though the small island of Singapore has about 5.0 million inhabitants and an economy smaller than the Philippines, it's still growing by leaps and bounds. Since opening its doors to legal gambling not too long ago, it's quickly become a gambling hub that some are comparing to Macau, China's massive gambling destination. More than 11 million people visited Singapore last year, a 20% increase from the year prior. Their spending saw a sweet boost of 49%, and no doubt that the gambling complex run by Las Vegas Sands is pulling its own weight.
Since opening in April 2010, Marina Bay Sands in Singapore has done nothing but impress. Sure, Macau revenue was a bit disappointing, but as CEO Sheldon Adelson said on the recent conference call, analysts should really be more concerned with property EBITDA anyway. So let's look how the company's various regional EBITDA's stack up in the latest quarter:
|Las Vegas||$80.6 million|
As you can see, Las Vegas is becoming less and less significant to the company. Although the company has only had a presence in Singapore for less than a year, the EBITDA from Singapore's single complex is almost as much as all three properties in Macau. This just goes to show you how important Singapore is as a future gambling hub, and how well-positioned Las Vegas Sands is in that region of the world.
How it compares
Melco Crown Entertainment
The Foolish conclusion
Billionaire Steve Wynn said in a recent conference call that the Las Vegas market may remain disappointing and lackluster through 2011. For investors not willing to take the risk or to wait out a rebound in consumer spending, the obvious sweet spots are Macau and Singapore. And last time I checked, there was really one company truly crushing it in Singapore, and that's Las Vegas Sands.
Jordan DiPietro owns no shares of the companies mentioned. Melco Crown Entertainment is a Motley Fool Global Gains selection. 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 that sometimes feels nostalgia for a world it never knew.