For the first time in two years,Las Vegas Sands reported increased earning at its Macau operations in June.
The June turnaround comes at a good time for Las Vegas Sands, which says its Macau gaming floors have been very busy in recent weeks.
Las Vegas Sands is scheduled to open its $2.7 billion Parisian resort and casino in Macau on September 13. That would be about three weeks after Wynn Resorts is scheduled to open its $4.1 billion Wynn Palace development in Macau.
Macau is the world’s largest gaming destination and has seen a slump in revenues the past two years as the Chinese economy experienced a downturn and the Chinese government cracked down on corruption and discouraged its citizens from undertaking gambling trips.
Despite the sunny outlook in June, Las Vegas Sands reported second-quarter revenues and profits that were lower than analysts’ estimates.
Sands reported earnings of 52 cents per share during the second quarter, down from the expected 56 cents in earnings analysts predicted.
Sales also declined, falling 9.3 percent at $2.65 billion. Estimates targeted $2.75 billion in sales.
Sands’ EBITDA in Macau dropped by 14 percent to $487.7 million. In Singapore, it fell 1.7 percent at $357 million.
In Las Vegas, Sands’ EBITDA rose by 34 percent at $72.5 million during the second quarter.
Based on the second quarter results for Las Vegas Sands, Telsey Advisory Group lowered its 2016 revenue forecast by 1 percent to $11.26 billion for Las Vegas Sands.
But with the Parisian opening soon, Telsey upgraded Las Vegas Sands’ EBITDA to $3.38 billion, a 3 percent increase over its prior assessment.
For 2017, Telsey estimates Las Vegas Sands will generate $12.78 billion in revenues, up by 4 percent, and a 3 percent greater EBITDA of $3.51 billion.
