today reported financial results for the quarter ended June 30, 2008.

Company-Wide Operating Results

Net revenue for the second quarter of 2008 increased 81.4% to $1.11 billion, compared to $612.9 million in the second quarter of 2007. Consolidated adjusted property EBITDAR in the second quarter of 2008 was $287.9 million, an increase of 44.1%, compared to $199.8 million in the year-ago quarter. On a GAAP (Generally Accepted Accounting Principles) basis, operating income was $73.3 million versus operating income of $86.2 million in the second quarter of 2007. The decrease in operating income of $13.0 million reflects an increase in revenue offset by operating expenses, including depreciation and amortization, related to our openings of The Venetian Macao in Macao and The Palazzo in Las Vegas, and an increase in corporate expense as we expand our infrastructure to execute our global growth plans.

Adjusted net income (excluding loss on disposal of assets, pre-opening expense, development expense, and loss on early retirement of debt) was $30.9 million, or adjusted earnings per diluted share of $0.09, compared to $81.9 million, or adjusted earnings per diluted share of $0.23, in the second quarter of 2007. The decrease in adjusted net income of $51.0 million reflects the decrease in operating income mentioned above, as well as increased net interest expense. On a GAAP basis, net loss in the second quarter of 2008 was $8.8 million, or $0.02 per diluted share, compared to net income of $34.4 million, or $0.10 per diluted share, in the second quarter of 2007. The decrease in GAAP net income of $43.2 million reflects decrease in operating income mentioned above, as well as increased net interest expense.

Second Quarter Highlights

William P. Weidner, president and COO stated, "Our second quarter results reflect both solid operating performance in Macao and Las Vegas and the measured execution of our global growth and development strategy. In Asia, our efforts to transform Macao into Asia's premier business and leisure destination steadily march forward. The Venetian Macao, the anchor of the Cotai Strip(TM), continues to consistently deliver market-leading visitation to Macao from around the region and the world, while the natural maturation process of the property's operations is now beginning to be reflected in the property's operating results. As we make final preparations for the opening next month of the Cotai Strip's second world-class destination resort, the Four Seasons Macao, we remain focused on the fundamental goal and commitment we share with the people of Macao -- the transformation of Macao into Asia's premier business and leisure destination. We remain confident that the execution of our Cotai Strip development strategy will deliver significant economic benefits to Macao and the entire region, as well as industry-leading returns to our shareholders. In Las Vegas, despite a more challenging economic environment, the combined Venetian and Palazzo complex, the largest integrated destination resort in the world, began to mature and to realize some of the significant operating efficiencies resident in our original master plan. As the Venetian and Palazzo complex continues this maturation process, we believe it is uniquely positioned to deliver strong growth and industry-leading returns in the Las Vegas market for years to come."

Las Vegas Second Quarter Operating Results

Adjusted property EBITDAR for our Las Vegas operations increased 28.1% to $106.6 million in the second quarter of 2008, compared to $83.2 million in the second quarter of 2007. On a GAAP basis, operating income for our Las Vegas operations decreased 26.2% to $42.1 million, compared to $57.0 million in the 2007 period. The increase in adjusted property EBITDAR reflects the opening of The Palazzo. The decrease in operating income reflects the increase in depreciation and amortization expense compared to the quarter one year ago, which is directly related to the opening of The Palazzo.

Las Vegas operations' table games drop was $408.2 million in the second quarter of 2008 versus $281.0 million during the second quarter of 2007, an increase of 45.3%. Slot machine handle (volume) increased 62.8% to $916.1 million in the second quarter of 2008, compared to $562.8 million during the second quarter of 2007. The increases in table games drop and slot handle were the result of the expansion of gaming capacity due to the opening of The Palazzo. Table games win percentage (calculated before discounts) was 20.5% in the second quarter of 2008, compared to 20.1% in the second quarter of last year. This compares to our expected range of 20% to 22%. Slot win percentage (calculated before slot club cash incentives) was 5.5% in the second quarter of 2008, compared to 6.1% in the second quarter last year. Casino revenues for Las Vegas operations were $126.5 million in the second quarter of 2008, compared to $85.4 million a year ago.

Las Vegas operations' hotel revenues increased 52.6% to $142.4 million versus $93.3 million in the second quarter of 2007. The increase in hotel revenues was principally due to the opening of The Palazzo.

The Venetian Las Vegas' average daily rate (ADR) was $245, compared to $266 in the second quarter of 2007. The Venetian's occupancy of available guestrooms decreased to 90.6% during the second quarter of 2008, down from 100.9% during the prior year period, as we chose to spread a portion of The Venetian's booked business over the 7,100 total suite inventory of the combined Venetian and Palazzo complex. Revenue per available room (REVPAR) at The Venetian decreased 17.2% to $222 in the 2008 period, compared to $268 in the second quarter of 2007. In its' second quarter of operation, The Palazzo's ADR was $243, while occupancy of available guestrooms was 92.9%, generating REVPAR of $226.

"The Palazzo, together with the comprehensively renovated Venetian Las Vegas and Sands Expo and Convention Center, now comprise the largest integrated resort and convention destination in the world, with approximately 7,100 all-suite rooms, 2.3 million square feet of meeting, convention and exhibition space, and world-class dining, retail, and entertainment amenities. We expect the significant back-of-house and other operating efficiencies that have been resident in our master plan for the combined complex since its inception to enable us to deliver industry-leading operating margins. We believe that our flexible and adaptable integrated Las Vegas facilities will provide an excellent platform for profitable growth and industry-leading returns, both in today's somewhat challenging economic environment, and in periods of more robust economic growth in the future.

Similar posts: las vegas hotel casino