Resorts and casino operator Las Vegas Sands Corp. (LVS: Quote), Wednesday reported a 33 percent jump in fourth-quarter profit, mainly on growth in Macau and Las Vegas operations, while its properties in Singapore were a cause for concern. Quarterly earnings topped Wall Street estimates, but revenue came in short of expectations.
“The focused and consistent execution of our global growth strategy, which leverages the power of our convention-based Integrated Resort business model, is clearly being reflected in our financial results,” said CEO Sheldon Adelson.
At its China operations – Sands China Ltd. – that encompasses its entire Macau properties, revenue climbed 28 percent to $2.53 billion from last year and net income was up 40 percent to $655.6 million.
Macau is the only place in China where casinos are legal. A booming market, Las Vegas Sands in 2012 announced its Sands Cotai Central Casino in Macau and has been adding rooms and games to attract visitors.
Within Macau, revenue at the company’s key Venetian Macau operations surged 36 percent and Sands Cotai operations spiked 61 percent.
Meanwhile, in Las Vegas, where the company operates the Venetian and the Palazzo resorts, revenue rose 25 percent to $385.7 million.
Customers spent on casino games as well as on rooms, food and beverages, the company said.
But revenue at Marina Bay Sands – its Singapore operations – slid 8 percent to $660 million.
The company posted quarterly net income of $578 million or $0.70 cents per share, compared with $435 million or $0.53 per share last year.
Excluding items, normalized earnings for the quarter were $0.87 per share. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.85 per share for the quarter. Analysts’ estimates typically exclude special items.
Revenues for the fourth quarter increased about 19 percent to $3.66 billion from $3.08 billion a year ago. Eighteen analysts had a consensus revenue estimate of $3.71 billion for the quarter.
The company said its next recurring quarterly dividend of $0.50 per common share will be paid on March 31 to shareholders of record on March 21.
During the quarter, the company repurchased 3.1 million shares for a total of $224.3 million.
The company’ stock closed Wednesday at $73.93, down $1.33 or 1.77%, on a volume of 8 million shares on the NYSE. In after hours, the stock dropped $1.33 or 1.80% at $72.60. In the past year, the stock has traded in the range of $47.95 – $82.48.
by RTT Staff Writer
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Las Vegas Sands Profit Up 33%
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