Casino owner saw net income rise to more than $267m in second quarter

NEW YORK / MELBOURNE, Australia - Sands China Ltd, the Hong Kong-listed casino company controlled by billionaire Sheldon Adelson, doubled second-quarter earnings as gambling surged at its Macao venues.

Net income rose to $267.4 million in the three months ended June 30 from $133.6 million a year earlier, the Hong Kong-based company said in a filing on Wednesday. Sands China also announced that Edward Tracy will become chief executive officer, with Adelson remaining as chairman.

Gamblers are betting more on high-stakes baccarat and increasing spending on hotel rooms as the company taps a growing demand for slot machines to boost Macao revenue. Adelson's Las Vegas Sands Inc, which on Wednesday reported a rise in its own earnings, owns about 70 percent of Sands China.

"This report could be the catalyst we have been waiting for at both Sands China and Las Vegas Sands," Anil Daswani, an analyst at Citigroup Inc in Hong Kong, said in a note to clients on Wednesday.

At Sands China's Venetian casino in Macao, adjusted property earnings before interest, taxes, depreciation and amortization, or EBITDA, climbed 34 percent to $258.4 million. EBITDA at Sands Macau rose 18 percent to $95.6 million.

Adelson, whose Marina Bay Sands is one of only two casinos in Singapore, predicted in May that his company will generate more than $3 billion in cash flow this year as gambling in Asia accelerates and Las Vegas recovers.

Las Vegas Sands' net income was $367.6 million, or 45 cents a share, compared with a loss of $4.68 million a year earlier, the Las Vegas-based company said in a separate statement. The figures reflect preferred dividend payments. Profit, excluding some items, was 54 cents, more than the 44-cent average of 23 estimates.

Quarterly sales jumped 47 percent to $2.35 billion, reflecting gains from Marina Bay Sands, which opened in April 2010. Cash flow in Singapore was $405.4 million in the quarter.

"Singapore is now the biggest profit contributor to Las Vegas Sands," said Jon Oh, a New York-based analyst for CLSA Asia-Pacific Markets who recommends buying the stock, in a note to clients.

"While market seasonality remains unclear, we urge investors to pay less attention to quarterly volatility and instead focus on the medium-term cash-flow potential in Singapore."

The company named George Tanasijevich chief executive officer of the Marina Bay Sands, Chief Operating Officer Mike Leven said on Tuesday during a conference call. Tanasijevich had been interim CEO since January. The Wall Street Journal reported his permanent role earlier on Tuesday.

Las Vegas Sands rose 12 cents to $46.30 in New York Stock Exchange composite trading on Tuesday.

Las Vegas is staging an uneven recovery from a record two-year drop in gambling and conventions. Gambling revenue on the Strip increased 5.2 percent this year through May, according to the Nevada Gaming Control Board.

Las Vegas Sands said it has enough workers to start opening its project on sites 5 and 6 of Macao's Cotai Strip from the first quarter of next year.

The company's Macao cash flow rose 28 percent to $391.6 million. Macao, the only place in China where casinos are legal, saw gambling revenue surge 58 percent last year and 45 percent in the six months ended June 30.

Bloomberg News