Sands Tumbles as Singapore Shortfall Weighs on Earnings
Sands Earnings Miss Estimates as Singapore Comes Up Short
(Bloomberg) -- Las Vegas Sands Corp. fell as much 6 percent after the world’s largest casino operator posted second-quarter earnings that missed analysts’ estimates, the result of lower house winnings in Singapore.
Shares of Las Vegas Sands fell as low as $70.58 in New York. The stock was up 8.1 percent this year as of Wednesday.
Fewer bets and a lower win percentage trimmed results at the Marina Bay Sands in Singapore, the company said Wednesday. Industrywide revenue in Macau, the only place in China where casino-style betting is legal, stayed strong despite fears that the World Cup or a brewing trade war with the U.S. would keep visitors away. Betting in Macau rose 17 percent to 73.7 billion patacas ($9.12 billion) in the quarter.
The company, founded by billionaire Sheldon Adelson, reported second-quarter profit edged up to 74 cents a share, excluding some items, trailing expectations of 78 cents. Revenue at the Las Vegas-based company rose 6.2 percent to $3.3 billion, exceeding the $3.28 billion projected by Wall Street.
In Macau, Sands’ earnings totaled $750 million, compared with the $751 million average of estimates compiled by Bloomberg. The enclave is the company’s biggest market, at 59 percent of revenue.
Profit in Singapore, where Sands does about a fourth of its business, slumped 25 percent, while earnings in Las Vegas fell 2.5 percent.
To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob Golum
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