LAS VEGAS (AP) — Casino giant Las Vegas Sands Corp. said its second-quarter profit rose 27 percent due to continued growth in Macau, but earnings missed analysts' expectations and suffered in June as bettors focused more on their World Cup wagers than on the casino tables.
Billionaire CEO Sheldon Adelson said Wednesday that the company is poised for more success in the lucrative Chinese gambling enclave because it has the large hotel room capacity to attract tourists and direct their money to casino floors below. Company officials also remain enthusiastic about the prospect of expanding into Japan and Korea.
"I am absolutely certain we will continue to grow," Adelson said. "I want to emphasize that one month or quarter doesn't make a trend. And nothing is going to change in Macau."
Las Vegas-based Sands derives a majority of its revenue from the Macau, but also operates The Venetian and the Palazzo on the Las Vegas Strip, the Sands Bethlehem in Pennsylvania and the Marina Bay Sands in Singapore.
Macau issued a limited number of gambling licenses in the early 2000s. Sands was the first U.S. casino corporation to enter the market and build up the Cotai Strip tourism district.
Las Vegas Sands reported net income of $671.4 million, or 83 cents per share, in the April-June period, compared with $529.8 million, or 64 cents per share, in the same quarter a year ago.
Earnings, adjusted for non-recurring costs, came to 85 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 89 cents per share.
The casino operator said revenue climbed 12 percent to $3.62 billion from $3.24 billion in the same quarter a year ago, and missed Wall Street forecasts. Analysts expected $3.78 billion, according to Zacks.
Las Vegas Sands shares fell $1.41, or 1.9 percent, to $72.39 in aftermarket trading. They have dropped $5.07, or 6.4 percent, to $73.80 since the beginning of the year. However, the stock has climbed $18.81, or 34 percent, in the last 12 months.
Keywords:Las Vegas Sands,Earnings Report