Las Vegas Sands 2Q15 Earnings Call Notes

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EBITDA grew in Macau despite double digit market revenue decline

“Our EBITDA in Macao grew sequentially by 6%. Against a backup of double-digit market revenue decline new competition in general wage inflation. Our Macao operations managed to improve the EBITDA and profit on a quarter-to-quarter basis. ”

People said Cotai wouldn’t work and now they’re “cutting off their arms” to get in

“The other guys can’t catch up to us, that train has left the station. When I first invisioned the idea of Cotai Strip other people criticized me and said it’s never going to work and now everybody is cutting off their arms to get into Cotai.’

We’re doing better than other operators

“I think that the other hotels really — the operators are really having difficulty and challenges confronting the situation being the challenges for all of us in Macao. We are maintaining the higher ”

Macau is now premium mass market, not just junket

“We built these malls a long time ago and they get stronger year after year, visitation is stronger it’s a reason to come to properties, we’re very proud what’s happening on the retail segment, how it translates down to the casino and the room occupancy. What you see in Macao, very clearly is that it’s mass market. It’s a premium mass, it’s no longer driven by junket GGR.”

We’re getting more vibe that a new opportunity is going to open in Asia, so we’re not paying as big of a dividend

“We’re getting more and more vibes that something is going to open up in Asia. And clearly if you talk to anybody in any of the countries where we’ve been, let’s use the word lobbing for a number of years. There isn’t anybody doesn’t thing that we’re in the pole position in any one of these countries. So it’s getting to smell like something is going to be coming up soon. And we’ve considered that in our cash flow vis-à-vis estimating the dividend”

Tough to get a room on weekends, but everyone is struggling mid week

“So, just like the fight when the MGM guys brought the fight late in May, you couldn’t get enough room, and enough gaming tables, that’s happening on weekends in Macao, that’s where demand is and that’s where the market is moving to. Everyone is struggling mid-week to my opinion, it’s the weekends where the money is being made, so that’s my take on the loose demand.”