LOS ANGELES (Jan 25): Las Vegas Sands Corp.’s big bet on Macau continues to pay off.
The world’s largest casino operator, which opened the US$2.9 billion Parisian in the Chinese enclave in 2016, reported sales and profit Wednesday that handily beat Wall Street estimates. Sands, based in Las Vegas, has invested more than any other operator in the only place in China where casino gambling is legal, and billionaire founder Sheldon Adelson is planning to spend an additional US$1.1 billion remodeling the Sands Cotai Central there.
For the fourth quarter, profit rose to 88 cents a share, excluding some items, Sands said in a statement. That beat analysts’ projections of 77 cents. Sales grew to US$3.44 billion, beating projections of US$3.26 billion on strength of casino results in Macau and Singapore, where Sands is also the largest operator.
The Macau casino market is bouncing back from a three-year slump, prompted by a government crackdown on corruption, though betting remains below the all-time high. Gamblers are being draw back to market by a still-strong mainland economy and a string of new resorts designed to appeal to high-rollers as well as casual gamblers.
Profit in Sands’ hometown of Las Vegas rose despite a tourism slump tied to the Oct. 1 mass shooting and rose in Singapore as well.
Shares of Las Vegas Sands rose as much as 4.4% to US$80.82 in extended trading after results were announced. The stock fell 0.3% to US$77.44 at the close in New York and rose 30% last year.
Earlier this week, Wynn Resorts Ltd. also reported quarterly results that beat Wall Street estimates and outlined plans to expand the US$4.2 billion Wynn Palace on Macau’s Cotai Strip as well as plans for a new property in its hometown of Las Vegas.
