Revenue up, profit down at Las Vegas Sands

Feb 17, 2009 5:03 PM
Earnings by Ray Poirier | A weakened global economy put pressure on gambling markets in both Macau and Las Vegas causing the Las Vegas Sands Corp. (LVS) to report a loss of $11.3 million or $0.27 per share compared to a profit of $39.9 million or $0.11 per share in 2007.

The loss included a noncash impairment charge of $37.6 million.

Net revenue during the period rose to $1.09 billion a 4% increase over last year’s $1.05 billion. However, the 2008 revenues included a full three months of operation at the company’s Palazzo facility which did not open until the final days of 2007.

For the full year, the company reported adjusted net income of $44.8 million compared to adjusted net income of $309.5 million a year earlier. The company cited increased operating costs, increases in depreciation and amortization expense and net interest expense as the reasons for the decline.

To improve the financial picture, said William Weidner, president and COO, the company will focus on three basic objectives: maximize cash flow from current operations, implement cost savings programs and finish on time and within budgets at the company’s two projects in Singapore and Pennsylvania.

In that regard, travel officials in Singapore noted a recent decline of 19% in tourism during the calendar year and are hopeful that the Marina Bay Sands hotel and casino resort will add jobs and serve as a major tourist attraction.

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