Las Vegas Sands Corp. on Wednesday reported second-quarter earnings of $469.2 million, a 30 percent drop compared to the same period a year ago.
Still, Las Vegas Sands CEO and Chairman Sheldon Adelson called the quarterly results a solid set of financials considering the challenges the company has faced in Macau where a government corruption crackdown has led to a significant downturn in gambling in the Asian enclave.
Adelson emphasized the company's focus on catering not just to gamblers but also convention-goers and tourists seeking attractions, shopping and dining, being first to create a Las Vegas Strip atmosphere in Macau.
"The other guys can't catch up to us. That train has left the station," he said of competitors and what sets Las Vegas Sands apart in Macau. "We are different. We originally envisioned the difference. We built the difference."
Las Vegas Sands owns and operates The Venetian and The Palazzo on the Las Vegas Strip, Sands Bethlehem in Pennsylvania, four properties in Macau and the Marina Bay Sands in Singapore.
The company's earnings without counting interest, taxes, depreciation and amortization again exceeded $1 billion but that was about $300 million short of a year ago.
The company cut the costs to operate its resorts by 17.5 percent during the period.
Robert Goldstein, Las Vegas Sands' president and chief operating officer, said the company is trying to be disciplined and cut fat, rather than muscle with plans to remain in Macau for many years to come. He said the company isn't done cutting costs.
"We understand it's a harsh new environment we're operating in," he said.
On a per-share basis, the Las Vegas-based company earned a profit of 59 cents. Earnings, adjusted for non-recurring costs, were 60 cents per share.
The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 61 cents per share.
The casino operator posted revenue of $2.92 billion in the period, which also fell short of Street forecasts. Five analysts surveyed by Zacks expected $2.96 billion.
Las Vegas Sands shares have dropped 5.5 percent since the beginning of the year. Wednesday, shares closed up 13 cents at $54.96, a decline of 26 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LVS at http://www.zacks.com/ap/LVS
Keywords: Las Vegas Sands, Earnings Report