Social and economic trends resulting in a decrease in gambling in Macau will have an impact across the casino industry.
Las Vegas Sands Corp., the world’s largest casino operator, reported first-quarter revenue and earnings that missed analysts’ estimates after gambling shrank in the key markets of Macau and Singapore.
The casino company, founded by billionaire Sheldon Adelson, reported profit fell to 66 cents a share, excluding items, according to a statement Wednesday. Analysts projected 72 cents, the average of 15 estimates compiled by Bloomberg. Revenue slumped 25 percent to $3.01 billion, missing estimates of $3.19 billion.
Las Vegas Sands, like other casino operators in the Chinese enclave of Macau, has seen a sharp decline in betting from high- rollers. President Xi Jinping’s crackdown on corruption has led many wealthy Chinese to cut back on conspicuous consumption.
Betting in Macau, the only place in China where casino gambling is legal, fell 37 percent in the first quarter to 64.8 billion patacas ($8.1 billion). The company derived 64 percent of its revenue there last year, according to Bloomberg data.
Las Vegas Sands fell 3.5 percent to $54.39 in extended trading after results were announced. The stock gained 1.7 percent to $56.39 at the close in New York and has lost 3 percent this year.
This article was written by Christopher Palmeri from Bloomberg and was legally licensed through the NewsCred publisher network.
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Photo credit: A part of Sands Cotai Central casino resort in Macau, China. Digital Pimp / Flickr