Las Vegas Sands Profit Rises - Update

(RTTNews) - Casino operator Las Vegas Sands Corp (LVS), Wednesday reported an increase in profit for the fourth quarter, as lower operating costs helped offset a revenue drop of 7 percent. Earnings for the quarter trumped Wall Street estimates, but revenues fell short of expectations hurt by weak Macau operations.

Las Vegas Sands' fourth-quarter profit rose to $721.3 million or $0.90 per share from $577.5 million or $0.70 per share last year.

Excluding items, adjusted earnings improved to $734.2 million or $0.92 per share from $592.9 million or $0.72 per share a year ago. On average, 19 analysts polled by Thomson Reuters expected earnings of $0.81 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Las Vegas Sand said revenues for the fourth quarter fell 6.6 percent to $3.42 billion from $3.66 billion a year ago. Analysts had a consensus revenue estimate of $3.51 billion for the quarter.

Las Vegas Sands and its smaller rival Wynn Resorts Ltd (WYNN) have flourished in Macau as customers throng the casinos for table games and slotting machines.

However, Macau recorded its first-ever drop in full-year gambling revenues in 2014, hurt largely by China's anti-graft campaign and sluggish economy. Revenue decline of 30.4 percent in December was the seventh consecutive monthly decline in 2014. Macau is the world's largest gambling hub and the only place in China where gambling is legal. In 2013, Macau raked in seven times the gambling revenues of the Las Vegas Strip.

Revenues from Sands China Ltd, the company's China business which includes four properties, dropped 16.2 percent to $2.12 billion, with only Four Seasons Hotel Macao reporting revenue growth of 2.4 percent.

Meanwhile revenue at Las Vegas operations slipped 6 percent to $362.6 million from a year ago, while Singapore operations, Marina Bay Sands, jumped 27 percent to 838.6 million. Revenues for Sands Bethlehem in Pennsylvania rose 7.7 percent to $133.6 million.

Total operating costs for the quarter dropped to $2.39 billion from $2.77 billion last year.

The company also increased its quarterly dividend by 30 percent to $0.65 per share, and will be paid on March 31 to shareholders of record on March 23.

LVS closed Wednesday's trading at $56.02, down $0.91 or 1.60%, on the NYSE. The stock, however, gained $1.99 or 3.55%, in the after-hours trade.