Las Vegas Sands revenue falls 19.4 pct

At least it wasn’t a net loss.

Las Vegas Sands (NYSE:LVS) shares climbed in after-hours trading Wednesday on improved margins for its casinos in Macau, the world’s top gambling destination. Macau, the only place in China where gambling is legal, has been a traditional hotbed for casinos, but recent anticorruption regulations have led to tough crackdowns on VIP gamblers. Overall Macau gaming revenue has declined 37 percent through June and the market has seen 13 straight monthly decreases. Revenue fell 19% to $3.09 billion. “I remain steadfast in my belief that we will grow and prosper in the long term”.

According to Union Gaming predictions, from the total US$3.019 billion of net revenue, the majority comes from Macau, which alone generates US$1.815 billion. The company has earned $469.17 million, or $0.59 a share in the quarter, compared with $671.43 million, or $0.83 a share for the same period past year.

Revenue at the Sands China unit fell 26% to $1.77 billion, as Macau suffers from tighter government restrictions, a partial smoking ban and weaker growth in China’s economy.

However, the company’s Sands Bethlehem casino in Pennsylvania proved to be a bright spot for revenue performance: Net revenue there increased 9 percent year-over-year to $137.5 million.

Las Vegas Sands’ founder, billionaire Sheldon Adelson, cited cost controls and a focus on higher-margin, mass-market players. The company attracted 16 million visitors to its Macau properties during the quarter. (NYSE:LVS) has been established at $57.08 per share.

The casino company’s Q2 earnings per share declined 29% to 60 cents, in lines with the consensus.

The corporate investigator, who is not named in the report, said his information was based on influential sources, including three people in the Beijing office responsible for overseeing Macau and Hong Kong affairs, two Chinese foreign ministry sources, and powerful Chinese businessmen with close ties to Beijing.

“ADR [average daily revenue] fell -10 percent quarter-on-quarter (-8 percent year-on-year), reflecting a more competitive market where hotel operators are increasingly selling rooms for cash as demand from VIP for rooms has declined and the market has yet to adjust fully”, said the Sanford C. Bernstein team. Las Vegas Sands (NYSE:LVS) is one of the companies that had it pretty bad in the past quarter and the ones before it. Investors are beginning to doubt the stock and consensus forecasts are falling. At the same time, adjusted EBITDA margin contracted 143 basis points in the quarter to 34.78 percent from 36.22 percent in the previous year period.

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th.