Las Vegas Sands Revenues Fall 9.2% in Q1

Las Vegas Sands has posted its financial results for the first quarter of 2016, revealing a 9.2% decrease in revenues to $2.72 billion, compared to the $3.01 billion that was collected in Q1 of 2015.
The world’s biggest casino operator’s blamed a number of factors for its poor performance, including lucky VIPs gamblers in Singapore, and unfavorable currency movements which ended up costing the company $35.8 million. More importantly, however, was a challenging Chinese market which saw revenues at the company’s Macau-based casino operation, Sands China Ltd., dragged down by 7.9% to $1.63 billion, and profits tumble by 9.6% to $311.6 million.
Macau’s casino market is currently in the midst of a 22 month downswing, mostly as a result of a slowing Chinese economy, and an anti-corruption campaign instigated by Chinese President Xi Jinping. In order to adapt to changing times, Macau’s casinos have increasingly been offering non-gaming enticements to give their properties mass-market appeal, and in September Sands China is expected to open its $2.7 billion Parisian Macao, complete with retail shops, numerous restaurants, and a huge replica of the Eiffel Tower.
Talking about Sands China’s latest worrying results, the company’s CEO Sheldon Adelson brushed off concerns going forward, and putting his faith in the new soon to open integrated casino resort explained:
“I don’t see that this is going to be permanent. When we open the Parisian I’m completely confident, more than confident. Everything is cyclical — we’ve been in Macau for 12 years now, and there have been times over the 12 years that people thought that the business was going down, and then it’s going to go up.”
Concerning some of Las Vegas Sands other properties, the Marina Bay Sands in Singapore saw its revenue fall by 23%, while its Las Vegas operations was also down by 2.3%, although the Sands Bethlehem in Pennsylvania reported a 8.6% rise in business during the first quarter ending March 31st.