Las Vegas Sands’ major sources of revenue

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Table games

Las Vegas Sands Corp. (LVS) generates over 80% of its total revenues from its casino operations. These operations mainly consist of table games and slot machines. In Asia, tables make up ~22% of the total number of slot machines and tables combined. Meanwhile, tables contribute only 6% to the total number of slot machines and tables combined in the U.S. Clearly, table games are more popular in Asia than in the U.S.

Part 2-1

The above chart shows the table-games-win per unit per day for the nine months ended September 2014. Four Seasons Hotel Macao and Plaza Casino table-games-win per unit per day climbed 18.8% year-over-year to ~$28,000, followed by Sands Cotai Central with ~$18,000, representing a gain of 19.5%.

The Venetian Macao’s and Sands Bethlehem’s table-games-win per unit per day remained almost flat compared to the same period the previous year. And Marina Bay Sands and Las Vegas Operating Properties experienced declines in table-games-win per unit per day for the nine months ended September 2014.

Slot machines

Las Vegas Sands’ U.S. slot machines make up ~94% of the total number of slot machines and table games combined in the U.S.

Part 2-2

The above chart shows the slot-machine-win per unit per day for the nine months ended September 2014. Four Seasons Hotel Macao and Plaza Casino recorded the highest slot-machine-win per unit per day of $775 up 8.1% year-over-year.

Marina Bay Sands and Las Vegas Operating Properties experienced almost flat growth rates of slot-machine-win per unit per day. Sands Bethlehem experienced a slight decline in slot-machine-win per unit per day.

Overall, you can see from the above chart that slot-machine-win per unit per day increased in all Asian locations.

Key stocks and ETF

Las Vegas Sands’ peers include MGM Resorts International (MGM), Wynn Resorts Limited (WYNN), Melco Crown Entertainment and Caesars Entertainment Corp. (CZR).

Investors can invest in ETFs such as the Consumer Discretionary Select Sector SPDR Fund (XLY) to avoid the risk of investing in individual casino companies.

Next in this series, we’ll look at Las Vegas Sands’ impressive performance in the hotel segment. You’ll also learn about important performance metrics in the hotel industry.

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