Land casino giant Las Vegas Sands has released its second quarter financial results, noting that profits fell by a third during the period.
Key financial indicators for the second quarter ending June 30th, 2016 were:
- Revenues of $2.65 billion, down 9.3% from last year
- Operating income of $518.7 million, down 25%
- Net income down 32.2% to $394.4 million
- Sands China revenues down 16.4% to $1.48 billion, with profits down 39% to $237 million
- VIP turnover down 10% at the Venetian Macao, 36% at Sands Cotai Central, 55% at Four Seasons, and 16% at Sands Macao.
- Las Vegas operations up 3% to $356.5 million, but saw a 5% fall in revenue
Commenting on the results Las Vegas Sands CEO Sheldon Adelson said, "The operating environment in Macao remained challenging during the quarter; but we do see signs of stabilization, particularly in the mass market. Our mass gaming revenues in the month of June 2016 increased versus the same month in 2015, the first year-on-year monthly mass gaming growth we have experienced in nearly two years. Our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows enabled us to deliver almost $400 million of net income and $955 million of consolidated adjusted property EBITDA during the quarter. We remain steadfast in our focus on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model."
"Our convention-based Integrated Resort business model appeals to the broadest set of customers, generates the most diversified set of cash flows and delivers the industry's highest revenue and profit from non-gaming segments, while bringing unsurpassed economic and diversification benefits to the regions in which we operate. We remain confident in our ability to further extend our global leadership position and deliver strong growth in the future."
"The prudent management of our cash flow, including the ability to continue the return of capital to shareholders while maintaining a strong balance sheet and ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy."