Late Wednesday, Las Vegas Sands posted its earnings for the first quarter that were just below Wall Street expectations although it did say that operations in Las Vegas were strong while the market in Macau was improving.
Management was also optimistic during its earnings call related to the possibility of an approval windows10explained to open up a casino resort in Japan.
Following the miss on earnings, shares of Las Vegas Sands were down 1% in trading after hours but began recovering following the companies positive earnings call.
Following a challenging time, the market in Macau is expanding again and the growth rate had accelerated for three straight quarters said Sheldon Adelson the CEO and Chairman during the earnings call.
Meanwhile, operations in Las Vegas had delivered their best three-month period since 2008, added Adelson.
The Venetian Las Vegas as well as Palazzo properties, both owned by Sands, posted strong results.
On the basis of GAAP, per share earnings expanded 50% during the first quarter. That nevertheless was the second straight quarter that the EPS for the company missed expectations on Wall Street.
Net revenue during the quarter increased by 14%, while its EPS was 60 cents per share and analysts were expecting 61 cents and its revenue was $3.11 billion or in line with Wall Street expectations.
Overall, its EBITDA or its earnings prior to interest, taxes, depreciations and amortization was up 25% during the quarter in comparison to the same period one year earlier and above estimates on Wall Street.
Macau’s operation grew its EBITDA 20% compared to the same period one year ago, helped by growth of 17% in revenues from gaming.
In addition, overall results were helped from strong quarters for Palazzo and Venetian Las Vegas and a record quarter for its business of convention and group meetings.
Analysts asked Adelson about the growth plans for the casino giant in Asia. Beside the Macau operations, the company has a presence in Singapore.
Adelson said that Japan is what is being talked about by everyone and the company was informed by those close to the situation in Japan that it was far ahead of its competition in receiving the approval for an integrated resort.
In Japan last year, the government took steps in legalizing casino resort gaming similarWindows 10 Professional OEM Key to Las Vegas style, which could give the opportunity for space to be available for hotel and casinos along with retail space and convention facilities.
The government has yet to formally pick companies for developing casinos but Sands and MGM Resorts, its rival, are interested.