Las Vegas Sands Falls as Macau Results Continue to Disappointby
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.