Las Vegas Sands revenue takes hit from Macau for 4th quarter, full year

Kin Cheung / AP

In this photo taken Nov. 23, 2014, visitors walk across the road in front of the Venetian Macao casino resort in Macau.

Las Vegas Sands, the casino company that runs the Venetian and Palazzo on the Strip in addition to properties in Macau and elsewhere, reported its fourth-quarter and full-year earnings today.

Company: Las Vegas Sands Corp. (NYSE: LVS)

Revenue: $2.86 billion, down 16.2 percent from the fourth quarter of 2014. For the full year, the company’s net revenue dropped 19.9 percent to $11.69 billion.

Earnings: $465.8 million for the fourth quarter, down 35.4 percent from the same period a year ago. Net income for the full year fell 30.8 percent to $1.97 billion.

Earnings per share: 59 cents, compared to 90 cents a year earlier.

What it means: The decline traces back to a familiar source for Las Vegas Sands: Macau, where the company generates the bulk of its revenue. Challenged by a government-led corruption crackdown that has hurt revenue from high rollers, as well as broader struggles in the Chinese economy, Macau has reported 19 consecutive months of year-over-year declines in gaming revenue.

Accordingly, fourth-quarter net revenue from Sands China Ltd. declined 21.7 percent to $1.66 billion. For the full year, Sands China’s net revenue was $6.86 billion, down 28.3 percent from 2014.

On a conference call with analysts, CEO Sheldon Adelson seemed pleased with the company’s Venetian property in Macau, which he said boasts strong visitation and earnings before certain costs — despite the tough operating conditions in the market. He had a similarly optimistic outlook for Sands’ new Parisian resort, slated to open in Macau later this year.

“I have not a shadow of doubt that the Parisian...will replicate the success of the Venetian as another themed, iconic and must-see integrated resort destination for Macau’s visitors,” Adelson said.

He said Sands saw signs of stabilization in Macau’s gaming revenue trends, and that it remained confident in the outlook for both the company and Macau moving forward.

Las Vegas remained a more favorable market for Sands at the end of last year. In the fourth quarter, net revenue from the Venetian, Palazzo and Sands Expo Center rose 10.3 percent to $400.1 million.

Sands Chief Operating Officer Robert Goldstein said on the conference call that Las Vegas was headed in a positive direction but that it was driven by the hotel side, with gaming more of a “mixed bag.”

At the company’s Marina Bay Sands property in Singapore, meanwhile, net revenue fell 16.1 percent in the fourth quarter. The company said in a statement that its financial results there were hurt by a stronger U.S. dollar and that “both gaming volumes and our nongaming segments remain resilient.”

The company also operates the Sands Bethlehem in Pennsylvania, where net revenue rose 4.7 percent in the fourth quarter.

Sands paid a quarterly dividend of 65 cents per share in the fourth quarter and said it would pay a dividend of 72 cents per share on March 31.