Las Vegas Sands Profit Falls 30%, Hurt by Macau Declines
26 July 2016 - 8:26AM
Dow Jones News
By Josh Beckerman
Las Vegas Sands Corp. said second-quarter earnings fell 30% as
declines in Macau continued to drag on its results.
Macau, the company's largest market, "remained challenging
during the quarter; but we do see signs of stabilization,
particularly in the mass market," the company said.
A corruption crackdown and slowing economy in China have hurt
business for Macau casino operators. In the short term, the
European Football Cup was considered a potential rival for gambling
attention.
Although revenue declined at its Macau sites, including a 9.9%
decrease at the Venetian Macao, the company said strong cost
discipline helped its margins there.
At Las Vegas operations, which include the Venetian, revenue was
up 3%, while the Sands Bethlehem in Pennsylvania posted a 6.5%
increase. At the Marina Bay Sands property in Singapore, revenue
fell 2.9%.
Las Vegas Sands shares rose 5% to $50.20 in after-hours trading
Monday.
Over all, Las Vegas Sands reported a profit of $328 million, or
41 cents a share, down from $469.2 million, or 59 cents a share, a
year earlier. Earnings excluding items fell to 52 cents a share
from 60 cents. Revenue fell 9.3% to $2.65 billion.
Analysts polled by Thomson Reuters projected earnings excluding
items of 56 cents a share on revenue of $2.76 billion.
In June, Fitch Ratings affirmed its ratings for Las Vegas Sands,
citing a strong balance sheet and predicting eventual improvement
in Macau.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 25, 2016 18:11 ET (22:11 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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