Las Vegas Sands Revenue Down 9.3% in Q2

Gambling operator Las Vegas Sands Corp. reported on Monday its financial results for the three months ended June 30, 2016. Consolidated net revenue amounted to $2.65 billion for the period in review, down 9.3% year-on-year from the $2.92 billion posted for the same quarter of the previous year.

Net income was down 32.2% to reach $394.4 million. In comparison, the total amount of $581.5 million was reported for the same three months of 2015. The gambling operator posted consolidated adjusted EBITDA of $955.1 million, down 6% year-on-year. On a hold-normalized basis, adjusted property EBITDA totaled $958.3 million, down 5.9%.

On a GAAP basis, operating income amounted to $518.7 million, down 24.8% as compared to the figure posted for the same period of the previous year. The drop was mainly attributed to lower than expected results from the gambling operator’s Macau operations and non-recurring legal costs.

Las Vegas Sands operates hotel and casino properties in Macau, Singapore, and the United States. Sands China Ltd., the major gambling operator’s Macau subsidiary, reported revenue of $1.48 billion, down 16.4% from the $1.77 billion reported for the same quarter of the previous year. Net income was down 39% to reach $237 million. Sands China Ltd.’s adjusted property EBITDA totaled $487.7 million and hold-normalized adjusted property EBITDA stood at $495.7 million.

Revenue from Marina Bay Sands, Las Vegas Sands’ Singapore-based integrated casino resort, totaled $710.1 million during the second quarter of the year, down 0.4% as compared to the same period a year ago. Adjusted property EBITDA decreased 1.7% to $357 million.

Revenue from the gambling operator’s Las Vegas-located properties totaled $356.5 million, up 3% year-on-year. Adjusted property EBITDA amounted to $72.5 million, up 33.8% from the $54.2 million reported for the same period of 2015.

Sands Bethlehem, a hotel and casino complex in Bethlehem, Pennsylvania, reported revenue of $146.5 million, up 6.5% year-on-year. Adjusted property EBITDA totaled $37.7 million during the quarter, reflecting a 10.6% increase from the figure posted for the same three months of the previous year.

Commenting on his company’s financial performance, Chairman and CEO Sheldon Adelson said that despite the challenging environment in Macau, they have seen stabilization in mass market gaming revenue. The official further noted that the company would remain focused on its growth strategy, which “leverages the power” of the integrated resort business model.

Mr. Adelson confirmed that The Parisian Macao, the company’s latest integrated resort, is set to open doors on September 13. The hotel and casino resort is located on Macau’s Cotai Strip, known to be the Asian equivalent of the Las Vegas Strip. The venue will be launched less than a month after rival Wynn Resorts opens its first Cotai Strip integrated resort – Wynn Palace. The latter property is slated for an August 22 opening.

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