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Las Vegas Sands relies on Macau for much of its annual revenue.
Supannee Hickman / Dreamstime
Third quarter sales and earnings
Las Vegas Sands
recovered slightly from last year, the gambling giant said on Wednesday, but remained well below 2019 levels as it struggled with tightened Covid-19 restrictions and faced regulatory crackdowns in China.
Las Vegas Sands
(Ticker: LVS) The share lost 2.6% in pre-market US trading on Thursday. The stock was down 1.9% on Wednesday before the company’s third quarter results were released, which largely missed expectations after markets closed.
Las Vegas Sands net sales were $ 857 million for the three months to the end of September, down from $ 446 million in the same period last year, but well below the pre-pandemic level of $ 3.25 billion in 2019. for more than $ 1.2 billion in quarterly revenue, according to FactSet data.
The company reported an operating loss of $ 316 million, an improvement on its 2019 loss of $ 523 million but well below its third quarter 2019 operating profit of $ 899. of $ 0.48 was worse than the -0.23 Wall Street expected.
Also read: Macau’s review of casino operations triggers a sell-off and an opportunity to buy
Las Vegas Sands relies on operations in Macau and Singapore for the lion’s share of its sales – where Covid-19 outbreaks have impacted travel and tourism this summer. The company said tightened pandemic restrictions and reduced visits continue to affect its financial results.
“We remain confident that travel and tourism spending in our markets may recover,” said Robert G. Goldstein, group chairman and CEO. “Demand for our offerings from customers who have been able to visit remains strong, but pandemic travel restrictions in both Macau and Singapore continue to limit visits and hinder our current financial performance.”
The company also faces risk related to the renewal of its gaming license in Macau next summer. The prospect remains that the Chinese government will crack down on gambling in Macau – the world’s largest gambling center – and impose more onerous agreements on companies like Las Vegas Sands.
News of an impending crackdown in September put the shares of Las Vegas Sands and its Hong Kong-listed subsidiary under heavy pressure.
Sand china
(1928.HK). Las Vegas Sands stock is down more than 10% since early September, while Sands China stock is down 31%.
