SINGAPORE: Las Vegas Sands Corp, the world’s largest casino operator, posted fourth-quarter sales and profit that missed analysts’ estimates as gambling revenue in the key markets of Macau and Singapore declined.
Profit excluding some items fell to 62 cents a share, the company founded by Sheldon Adelson said Wednesday (Jan 27) in a statement. Analysts projected 64 cents, the average of estimates compiled by Bloomberg. Sales slumped to US$2.86 billion, compared with estimates of US$2.91 billion. The company raised its quarterly dividend to 72 cents a share for 2016.
The higher dividend could signal management’s confidence in the outlook for Macau. Investors are looking for signs of a recovery after Mr Adelson in December predicted a turnaround “in the near future, certainly in 2016.”
Sands, like other Macau casino operators, has suffered from a sharp decline in betting by high rollers following a Chinese government crackdown on corruption. Mass market betting has been more resilient. Sands has a US$2.7 billion resort called the Parisian scheduled to open in Macau later this year.
At Sands China Ltd, adjusted earnings before interest, taxes, depreciation and amortization shrank 19 per cent to US$581.2 million. Revenue fell 22 per cent to US$1.66 billion.
Adjusted earnings in Singapore, where it owns and operates Marina Bay Sands, fell 35 per cent to US$338.2 million.
In Las Vegas, adjusted earnings rose 25 per cent to US$97.4 million.
Net income fell 35 per cent to US$465.8 million, or 59 cents a share, from a year earlier. Sales tumbled 16 per cent.
