X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Las Vegas Sands Corp. on Thursday reported a nearly four-fold increase in its net loss for the third quarter on a 3.2% increase in revenue. The casino operator cited higher income tax costs and poor performance in Las Vegas, where revenues declined more than 25%. In Macau, revenue at its Sands-branded property rose 13% while revenue at its Venetian property fell by only 5.5%.

All told, Las Vegas Sands lost $123 million or $0.19 per share on revenue of $1.14 billion in the quarter, citing a $73.7-million increase in income tax costs as the primary driver. In the same year-earlier period, the company lost $32 million or $0.09 per share on revenue of $1.11 billion. Excluding one-time items, the company reported a profit of $0.03 per share.

In Las Vegas, where the company owns the adjacent Venetian and Palazzo resorts and Sands Convention Center, the company reported a 26% drop in revenue compared to the same year-earlier period, and an operating loss of $28.9 million compared to a gain of $6.1 million in the same year-earlier period. It cited a lower-than-usual win percentage from table games and lower hotel room rates as the primary reasons for the decline. Looking on the bright side, chief executive Mike Leven said group hotel booking spiked during the quarter.

“In fact, we put more future group room nights on the books this quarter than we have during any other 90-day period in our history,” he said.

Occupancy at its Las Vegas resorts was in the high 80% range during the quarter, down from the low-to-mid-90% range in the year earlier period. The average daily room rate was off by 17% at the Venetian and 25% at the newer Palazzo resort. Revenue per available room at the two resorts fell by 20% and 30%, respectively.

In addition to its properties on the Las Vegas Strip and in Macau, Sands owns a casino in Pennsylvania that opened earlier this year. Early next year, it will open a casino resort in Singapore.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.