Las Vegas Sands Falls as Macau Results Continue to Disappoint

  • Profits decline in key casino markets of Macau and Singapore
  • Gambling revenue continues to drop in Chinese betting enclave

Las Vegas Sands Corp., the world’s largest casino operator, fell the most in eight months after failing to reverse a slump in Macau, its biggest market, in the first quarter.

Earnings before interest, taxes, depreciation and amortization at Sands’ Macau resorts decreased 2.5 percent from a year earlier to $517.9 million. Like others operating in the Chinese enclave, Sands has been coping with a sharp decline in betting by high-rollers. The Chinese government’s crackdown on corruption, coupled with a slowing domestic economy, has led to a multiyear slump at the baccarat tables.

Total profit fell to 45 cents a share, excluding some items, Las Vegas-based Sands said Wednesday in a statement, missing the 63-cent average of analysts’ estimates compiled by Bloomberg. Revenue shrank 9.8 percent to $2.72 billion, missing projections of $2.88 billion.

The stock tumbled as much as 11 percent to $46.50, the biggest intraday decline since Aug. 24. It had advanced 19 percent this year through Wednesday. Other Macau casino shares also fell, including Melco Crown Ltd. and Wynn Resorts Ltd.

  • Profit in Singapore, which is also caters to Chinese customers, declined 34 percent to $274.9 million.
  • Sands may sell its Singapore resort’s retail assets after a government-imposed moratorium expires next year, Chairman Sheldon Adelson said.
  • In Las Vegas, the company’s Ebitda rose 17 percent to $86.9 million.
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