Las Vegas Sands Corp. released a report about company’s financial performance during Q1 of the current fiscal year and according to the numbers presented, the earnings decreased by 34% as compared to the data reported a year earlier.
The rapid decrease is attributed mainly to the weak revenue generated by company’s casinos in Macau.
The anti-corruption campaign made high-rollers chose another gambling destination, which, therefore, led to weakened economy. It is a well-known fact that the revenues generated by the casinos in the administrative region played a key role in establishing strong economy.
Given the current complicated situation, all operators available in Macau, including Las Vegas Sands, are reviewing the costs due to the issues with their margins and revenue.
As for the net revenue of Las Vegas Sands, a decrease of 35% was registered and the amount generated was equal to $1.77 billion. The net income decreased by 54% to reach $344.7 million.
The profit reported by all Las Vegas Sands properties amounted to $511.9 million. As compared to the numbers posted a year earlier, the decrease is $264.3 million.
Speaking of per-share earnings, the decline was 32 cents per share. Revenue reached $3.01 billion or a decrease of 25% was registered. Both profit per share and revenue numbers missed analysts’ expectations as they projected the per-share profit to be 71 cents and the revenue to be $3.2 billion.
March was a tough month for the Macau casino industry as it was the tenth consecutive one when a sharp decrease in revenue was posted.
The numbers reported by the Chinese subsidiary of the company during the first quarter, show that the revenue totaled $1.77 billion and the net income declined to $344.7 million.
Sheldon Adelson, Las Vegas Sands CEO, commented on the matter and said that despite the weak performance of Macau-based properties, he is still optimistic that the situation will be improved soon.
He went on to say that finding the right strategy that enables the company to seek further growth is essential for its future development. Mr. Adelson pointed to the fact that Las Vegas Sands is determined to expand its business on the Asian gambling market, while ensuring the growth of the tourism sector. In conclusion, he said that the company can take pride in having resisted “much stormier weather” over the years and the crisis in Macau is to be overcome as well.
