Las Vegas Sands' Results Miss Estimates; Dividend Raisedby
Both Macau and Singapore post lower adjusted property earnings
Dividend increase could boost investor confidence in recovery
Las Vegas Sands Corp., the world’s largest casino operator, posted fourth-quarter sales and profit that missed analysts’ estimates as gambling revenue in the key markets of Macau and Singapore declined.
Profit excluding some items fell to 62 cents a share, the Las Vegas-based company founded by Sheldon Adelson said Wednesday in a statement. Analysts projected 64 cents, the average of estimates compiled by Bloomberg. Sales slumped to $2.86 billion, compared with estimates of $2.91 billion. The company raised its quarterly dividend to 72 cents a share for 2016.
The higher dividend could signal management’s confidence in the outlook for Macau. Investors are looking for signs of a recovery after Adelson in December predicted a turnaround “in the near future, certainly in 2016.” Sands, like other Macau casino operators, has suffered from a sharp decline in betting by high rollers following a Chinese government crackdown on corruption. Mass market betting has been more resilient. Sands has a $2.7 billion resort called the Parisian scheduled to open in Macau later this year.
- At Sands China Ltd., adjusted earnings before interest, taxes, depreciation and amortization shrank 19 percent to $581.2 million. Revenue fell 22 percent to $1.66 billion.
- Sands’ adjusted earnings in Singapore fell 35 percent to $338.2 million.
- In Las Vegas, adjusted earnings rose 25 percent to $97.4 million.
- Net income fell 35 percent to $465.8 million, or 59 cents a share, from a year earlier. Sales tumbled 16 percent.
Las Vegas Sands rose 2.4 percent to $42.58 in extended trading after results were announced. The shares climbed 1.8 percent to $41.59 at the close Wednesday in New York. They were down 25 percent last year. Sands China advanced 6.5 percent to HK$24.55 in Hong Kong.