LAS VEGAS (BLOOMBERG) - Las Vegas Sands Corp, the world's largest casino operator, fell as much as 7.9 per cent in extended trading after first-quarter earnings missed analysts' estimates amid slumping results in Macau, its biggest market, and Singapore.
Profit fell to 45 cents a share, excluding some items, Sands said on Wednesday (April 20) in a statement, missing the 63- cent average of analysts' estimates compiled by Bloomberg. Revenue shrank 9.8 per cent year-on-year to US$2.72 billion, missing projections of US$2.88 billion.
The company attributed the decline to weaker year-over-year results from its Macau casinos, a lower win percentage on rolling chip play at its Singapore casino and a "US$35.8 million mark-to-market loss on Singapore dollar forward contracts."
Revenue from Sands China Ltd, the company's Macau subsidiary, dropped 7.9 per cent in the first quarter to US$1.63 billion. The Macau market has suffered 22 straight months of year-over-year declines in gaming revenue as a Chinese government crackdown on corruption and weakness in the Chinese economy have hurt business from high rollers.
First-quarter profit in Marina Bay Sands in Singapore, which also caters to Chinese customers, declined 34 per cent to US$274.9 million (S$369.4 million). Net revenue was down 23.1 per cent to US$603.7 million.
Sands is preparing to debut its new US$2.7 billion Parisian resort, which is on track for a mid-September opening on Macau's Cotai Strip, Chairman and CEO Sheldon Adelson said on a conference call on Wednesday.
Mr Adelson said that despite the ongoing challenges in Macau, he was still confident the Parisian could perform well.