The $11.2-million first quarter loss, well below analysts'consensus estimate, is being attributed to new competition abroadand declining tourism at home. In the same period last year, thecompany posted a profit of $90.9 million. Excluding items such aslosses on sold assets and casino opening expenses, adjustedearnings totaled $23.6 million. The comparable result for the firstquarter of 2007 was $114 million.

"Our first-quarter operating results reflect both an intenselycompetitive operating environment in Macau as well as a weakereconomic environment here in the United States," says WilliamWeidner, Sands president and chief operating officer.

Due to the new Palazzo, the company saw revenue jump 72% to$1.08 billion from $628.2 million in the first quarter of 2007.Analysts expected revenue of $1.24 billion. Due in large part tothe Palazzo, net revenue at the company's Las Vegas properties rose21% over the previous year to $351.6 million. Net revenue at theVenetian Macao, which opened in August, was $455.7 million. Whilenet revenue at Sands Macao fell 23% to $268.3 million.