Yahoo Finance Las Vegas sands rises as Chinese gamblers defy economic worries
By Redd Brown
(Bloomberg) — Las Vegas Sands Corp. reported sales that beat Wall Street’s expectations as Chinese travel to Macau continued its recovery, defying concerns of an economic slowdown.
Sales were $2.92 billion, rising 161% from a year earlier, the company said in a statement. Analysts had expected $2.89 billion. The company reported adjusted earnings per share of 57 cents, compared with a year-earlier loss of 19 cents — the biggest improvement since normal travel conditions resumed after the pandemic — though they fell short of consensus estimates.
Chinese travelers to Macau from China totaled 6.47 million, equal to 88% of levels seen in the same period in 2019. Gamblers also arrived from Hong Kong above pre-pandemic levels for the second consecutive quarter.
Visitation to Las Vegas Sands properties continued in the period despite signs the Chinese economy is coming under increasing economic strain. Earlier Wednesday the Chinese government said it would loosen reserve requirements for banks to free up more liquidity in an effort to halt a $6 trillion stock-market rout.
“Can the Macau market grow to $30 billion or even $40 billion and beyond?,” Chief Executive Officer Rob Goldstein asked during a conference call with analysts. “We believe that it will.”
The firm is planning to invest billions in its Macau properties this year, following multi-billion dollar renovations last year. Earlier, Las Vegas Sands agreed to purchase $250 million of Sands China Ltd. shares.
Las Vegas Sands’ Singapore operation continues to perform strongly, delivering the strongest quarter in its history.
The casino operator was among the best performing S&P 500 Index stocks in post-market trading, with shares up about 2% at 4:47 p.m. in New York. Peers MGM Resorts International, Wynn Resorts Ltd. and Caesars Entertainment Inc. all traded higher after the results.
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