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Las Vegas Sands 1st-quarter profit falls on casino opening expenses

Las Vegas Sands 1st-quarter profit falls on casino opening expenses

Las Vegas Sands Corp., the casino company run by billionaire Sheldon Adelson, said Wednesday its net profit for the first quarter fell 25 percent from a year ago, saying expenses increased due to planned casino openings in Macau, Singapore and the United States.
Net income dropped to $90.9 million (euro66.9 million), or 26 cents per share, compared to $121.8 million, or 34 cents a share, a year ago. Revenue grew 18.5 percent to $628.2 million (euro462.3 million).
After excluding one-time items, adjusted net income for the quarter ended March 31 was 32 cents per share, down from 38 cents a share a year earlier.
Analysts polled by Thomson Financial projected a first-quarter adjusted net income of 32 cents per share on revenue of $617.1 million (euro454.15 million).
The earnings announcement came after the markets closed. Las Vegas Sands shares fell $3.19, or 3.6 percent, in extended trading after closing up $2.92, or 3.4 percent, to $88.54 on the New York Stock Exchange.
The company said its profit was hurt by a 61 percent increase in interest expenses to $34.6 million (euro25.46 million) because of borrowing under a $2.5 billion (euro1.84 billion) credit facility for the developments in Macau and a $1.4 billion (euro1.03 billion) credit facility for developing a resort in Singapore.
It also incurred $12 million (euro8.83 million) in higher expenses at the Sands Macao for speeding up the promotion of supervisors and increasing commissions for VIP junket operators to prepare for the late August opening of its $2.4 billion (euro1.77 billion) anchor resort on the Cotai Strip, The Venetian Macao.
Chief operating officer William Weidner said some promotions were made to keep staff from migrating to the competition.
"We, in essence, advance promoted and advance paid many of the hundreds of people that we needed to be the supervisory people when we open up The Venetian," he said.
Net revenue at The Venetian in Las Vegas rose 11.7 percent from a year ago to $277.8 million (euro204.45 million). Net revenue at The Sands Macao rose 24.4 percent to $350.4 million (euro257.87 million).
The company broke ground in February on the $3.6 billion (euro2.65 billion) Marina Bay Sands in Singapore, which it said remained on track to open in 2009.
The Palazzo, a $2.56 billion (euro1.88 billion) casino-resort, mall and condo tower, is set to open late this year beside The Venetian in Las Vegas. The company said it would run the combined 7,128-room complex with operating efficiencies of $40 million (euro29.44 million) to $60 million (euro44.16 million) a year because of linked back-room management.
This week, Las Vegas Sands began demolition work to pave the way for the $600 million (euro441.57 million) Sands Bethworks casino complex in Bethlehem, Pennsylvania.
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On the Net:
http://www.lasvegassands.com


Updated : 2020-11-30 20:20 GMT+08:00