Las Vegas Sands Profit Falls as Macau Remains Challenging

By Josh Beckerman 

Las Vegas Sands Corp. reported first-quarter results below Wall Street expectations, as the Macau market remained challenging.

The casino company said "we do see signs of stabilization, particularly in the mass market."

Shares fell 4.1%, to $50.02, in after-hours trading.

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 have been re-evaluating costs amid the pressures on their revenue and margins.

Las Vegas Sands said first-quarter revenue at the Sands China business fell 7.9%, to $1.63 billion.

Over all, Las Vegas Sands reported a profit of $320.2 million, or 40 cents a share, down from $511.9 million, or 64 cents a share, a year earlier. Excluding pre-opening expenses and other items, per-share earnings fell to 45 cents from 66 cents. Revenue fell 10%, to $2.72 billion.

Analysts polled by Thomson Reuters expected earnings excluding items of 63 cents a share on revenue of $2.88 billion.

Earlier this month, Las Vegas Sands agreed to pay $9 million to settle Securities and Exchange Commission allegations that its Chinese operations had poor accounting controls from 2006 through at least 2011.

The allegations focused primarily on the company's sponsorship of a Chinese basketball team, plans for a business center in Beijing, and a ferry deal in Macau. The SEC said the company transferred more than $62 million to a consultant in China, often without supporting documents or appropriate authorization.

The company's U.S. properties include the Venetian in Las Vegas and Pennsylvania's Sands Bethlehem. It also owns the Marina Bay Sands in Singapore.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

April 20, 2016 17:26 ET (21:26 GMT)

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