Sands Falls Short of Fourth-Quarter Expectations

Las Vegas Sands Corp. has reported a 65 percent drop in net profits for the fourth quarter -- down to $39.9 million from $113.6 million a year ago -- citing increased construction and pre-opening expenses as the main reason for the decline.

Total quarterly revenue rose to a record $1.05 billion compared to last year's $636.3 million, but analysts had anticipated revenues reaching $1.1 billion. The revenue figure includes a full quarter of contribution from The Venetian Macau, which opened on August 28. The Venetian Macau brought in $500.4 million in revenue during the quarter, but its opening may have partly cannibalized traffic at another LVS operation, The Sands Macau, where revenue slumped 16.7 percent to $288.2 million.

Revenue from the company's Las Vegas casinos fell 24.6 percent to $116.1 million, due mainly to lower table game winnings at its casinos, while hotel revenue rose 4.2 percent to $90 million.

"We are pleased with our fourth quarter operating results, which reflect the steady execution of our global growth strategy," said LVS President and COO William Weidner. "In Asia, our efforts to transform Macau into Asia's premier business and leisure destination continue to bear fruit. The strong visitation to the Cotai Strip's anchor property, The Venetian Macau, and the strong performance of the property's hotel, entertainment, retail, gaming and group meeting businesses, reflect that we are delivering on the fundamental goal and commitment we share with the people of Macau, Hong Kong and all of Southern China -- the transformation of Macau into Asia's premier business and leisure destination."

LVS opened its Palazzo casino-resort on Dec. 30, which Weidner described as "completing our master-plan of the largest integrated destination resort in the world." The company continues to develop a string of casino resorts in Macau's Cotai Strip and is planning a leisure resort and convention complex on Hengqin Island off China's southern coast. It is also constructing a $4 billion casino project in Singapore and a 126-acre casino resort on the site of the former Bethlehem Steel plant in Bethlehem, Pennsylvania.

No mention was given in the LVS' SEC report or accompanying press release to its planned remote gambling operation in Alderney. The Sands revealed more than a year ago that it planned to bring LVS brands the Venetian, Sands, Palazzo and Paiza to the Internet by way of Cantor Gaming software systems, but the venture has already missed its Q2 2007 proposed launch date.