Las Vegas Sands Profit Falls 34% on Weakness in Macau

   By Tess Stynes 
 

Las Vegas Sands Corp. (LVS) said its first-quarter earnings fell 34% on continued pressures from a slowdown in Macau.

Shares fell 3.4% to $54.50 in recent after-hours trading as the results missed expectations.

A corruption crackdown and weakening economy on the mainland have cut into business in Macau, the only place in China where casinos are legal. Casino operators including Las Vegas Sands have been re-evaluating costs amid the pressures on their revenue and margins.

Las Vegas Sands, which has four casinos in Macau, said the Sands China business reported net revenue slumped 35% to $1.77 billion. Segment net income dropped 54% to $344.7 million.

Overall, Las Vegas Sands reported a profit of $511.9 million, or 64 cents a share, down from $776.2 million, or 95 cents a share, a year earlier. Excluding pre-opening expenses and other items, per-share earnings fell to 66 cents from 98 cents. Revenue dropped 25% to $3.01 billion.

Analysts polled by Thomson Reuters expected per-share profit of 71 cents and revenue of $3.2 billion.

Write to Tess Stynes at [e-mail]

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