Las Vegas Sands falls in late trading after missing second-quarter estimates

[NEW YORK] Las Vegas Sands, the big casino operator, fell in late trading after reporting second-quarter results that trailed Wall Street estimates, hurt by continued travel restrictions in Macau and Singapore.

Adjusted property earnings came to US$244 million, the company said Wednesday, short of the US$290.6 million average of estimates compiled by Consensus Metrix. The adjusted loss per share totaled 26 cents, larger than the 17 cents analysts forecast.

Sands is trying to bounce back from pandemic-related travel restrictions that remain in place in its two key markets: Macau and Singapore. The company agreed in March to sell its Las Vegas properties for US$6.25 billion, concentrating its operations in Asia.

Revenue for the quarter soared to US$1.17 billion, compared with US$62 million a year earlier. But that missed estimates of US$1.37 billion.

Shares of Sands fell as much as 3.8 per cent to US$47.55 in extended trading before paring the loss somewhat. The stock was down 17 per cent this year through the close of regular trading Wednesday in New York.

On a conference call with investors, Sands executives said they believe business in Macau would be stronger in the second half of this year, while a return to normal volume in Singapore was harder to predict.

Singapore's Health Ministry said the company's Marina Bay Sands casino would close from July 22 to Aug 5 because of a new cluster of Covid-19 cases linked to the facility.

Sands President Patrick Dumont shed some light on the company's plans to enter the online gambling segment.

He said the company would focus on being a supplier to other online gaming companies and make small acquisitions. He said Sands is unlikely to make any billion-dollar deals. "I don't think we're going to buy our way into a business," he said.

Chief executive officer Rob Goldstein said he also sees potential to build large, land-based casinos in US states, such as Texas and Florida, where the company is backing ballot initiatives next year that could allow such expansion.

BLOOMBERG