Las Vegas Sands' Profit Drops on Macau Weakness

Las Vegas Sands Corp. said profit tumbled in its latest quarter as the casino operator continued to struggle in Macau.

The operating environment in Macao remained challenging during the quarter, Las Vegas Sands Chief Executive Sheldon Adelson said Wednesday. Macau is the only place in China where casinos are legal, and a weakening economy on the mainland in addition to a stock market rout and a corruption crackdown have cut into business there. Casino operators like Las Vegas Sands have been re-evaluating costs amid the pressures on their revenue and margins.

Revenue at the Sands China business dropped 22% in the fourth quarter while profit in the segment fell 19%. Las Vegas Sands' Marina Bay Singapore casino also saw a steep drop in results.

In the U.S., where properties include the Venetian and the Palazzo in Las Vegas, revenue rose 10% as hotel occupancy grew. Earnings from the Vegas properties increased 23% to $80 million.

Overall, the company reported a profit of $465.8 million, or 59 cents a share, down from $721.3 million, or 90 cents, a year earlier. Excluding certain items, per-share profit fell to 62 cents from 92 cents.

Revenue slid 16% to $2.86 billion. Analysts projected 65 cents in adjusted earnings per share and $2.92 billion in revenue, according to Thomson Reuters.

In after-hours trading, Las Vegas Sands rose 0.4% to $41.75.

Write to Lisa Beilfuss at [e-mail]

(END) Dow Jones Newswires

January 27, 2016 17:35 ET (22:35 GMT)

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