July 17 (Bloomberg) -- Las Vegas Sands Corp., the world’s largest casino operator, reported second-quarter sales and profit that missed analysts’ forecasts, as gambling revenue slowed in Macau, the world’s No. 1 market.
Net income rose 27 percent to $671.4 million, or 83 cents a share, from $529.8 million, or 64 cents, a year earlier, Las Vegas-based Sands said in a statement yesterday.
Excluding some items, earnings of 85 cents missed the 89-cent average of 19 analysts’ estimates compiled by Bloomberg. Sales grew 12 percent to $3.62 billion, trailing the $3.79 billion estimate.
Sands, with leadership in the mass market, contended with a drop in betting in Macau, the only part of China where casino gambling is legal. The action was clipped by lower spending from high-rollers known as VIPs, with industry revenue in June shrinking 3.7 percent to 27.2 billion patacas ($3.4 billion).
That was the first decline since June 2009, according to John Kempf, an RBC Capital Markets analyst. Authorities in Macau have been making regulatory changes that have crimped casino spending, such has restricting the use of China UnionPay Co.’s debit cards at casinos, Kempf said.
Sands China Ltd., the biggest unit of Las Vegas Sands, fell in Hong Kong trading today, amid an overall decline in Macau casino stocks, after it posted second-quarter profit that missed analysts’ estimates. The casino operator reported adjusted property earnings before interest, taxes, depreciation and amortization of $800.6 million, short of the $856.5 million average analyst estimate.
Las Vegas Sands, founded by billionaire Sheldon Adelson, declined 1.4 percent to $72.75 in extended trading after the company announced its results. The shares have fallen 6.4 percent this year to $73.80 as of the close in New York yesterday.
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