Major casino company Las Vegas Sands released on Wednesday information about the financial performance of its venues across the US and Asia during the quarter ended March 31, 2016. Net revenue was down 9.8% to $2.7 billion. In comparison, the amount of $3 billion was posted for the same period a year ago.
Consolidated adjusted property EBITDA for the period totaled $917.6 million, representing a 12.7% decrease as compared to the figures reported for the first quarter of 2015. On a GAAP basis, operating income was down 17.6% and amounted to $585.6 million. The drop in operating income was mainly attributed to weaker results across the operator’s Macau properties as well as lower rolling chip win percentage at Marina Bay Sands, known to be one of the two integrated casino resorts in Singapore.
On a GAAP basis, net income dropped 37.5% to $320.2 million. Adjusted income decreased from $531.1 million in the first quarter of 2015 to $357.4 million in the three months ended March 31, 2016.
Sheldon Adelson, Chairman and CEO of Las Vegas Sands, said that Macau’s operating environment remained quite challenging in the first quarter of the year but that they see signs of improvement and stabilization. The executive further noted that the “higher margin mass and non-gaming operations” as well as the geographic diversification of cash flow made it possible for the company to report hold-normalized adjusted property EBITDA exceeding the one billion mark. Mr. Adelson said that the Las Vegas Sands will continue focusing on its proven strategy for international growth
Sands China, Las Vegas Sands’ Macau subsidiary, generated net revenue of $1.63 billion in the first quarter of 2016, down 7.9% from the previous year. Adjusted property EBITDA dropped 2.5% to $517.9 million. Net income amounted to $311.6 million, down 9.6% year-on-year.
Marina Bay Sands, Las Vegas Sands’ Singapore-based integrated hotel, casino, and convention resort, reported net revenue of $603.7 million for the period in review, down 23.1% year-on-year. The venue posted adjusted property EBITDA of $274.9 million, down 33.8% as compared to the figure posted for the same three months of 2015. The significant decrease in key performance indicators was attributed to the stronger US dollar and to the low win percentage on rolling chip play.
Las Vegas Sands’ Las Vegas-based properties generated overall net revenue of $384.9 million, up 2.3% from the first quarter of 2015. Adjusted property EBITDA for the period amounted to $86.9 million, representing an increase of 17.3% as compared to the figures posted for the same period a year ago.
Net revenue at Sands Bethlehem in Pennsylvania was up 8.6% to reach $138.7 million. Adjusted property EBITDA increased 26.1% to reach $37.7 million.
